TMI Blog1989 (2) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income-tax, Calcutta, by special leave against an order of a Division Bench of the Calcutta High Court declining to direct the Income-tax Appellate Tribunal (hereinafter referred to as "the Tribunal") to refer to the court for determination of certain questions raised by the Commissioner of Income tax. It is necessary to set out a few facts for an appreciation of the controversy in this appeal. In its assessment for the assessment year 1959-60, the respondent-assessee claimed deductions, inter alia, in respect of the loss on the sale of certain shares of Bharat Starch and Chemicals Ltd. and Greaves Cotton and Co. Ltd. for the relevant previous year. The respondent-assessee had sold in the relevant previous year 25,000 shar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner against the order of the Income-tax Officer. In respect of the sale of the shares of Bharat Starch and Chemicals Ltd., the Appellate Assistant Commissioner accepted that the market quotation of these shares at Rs. 8.06 on March 31, 1959, was a nominal quotation and that there was no transaction in these shares at that rate because there was no buyer at that price and that the Income-tax Officer was wrong in relying upon this circumstance to come to the conclusion that the transaction in the sale of these shares was not genuine. He also took the view that the Income-tax Officer was in error when he took the view that because these shares had changed hands between companies controlled by the same group, that fact had vitiated th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad been regarded as dealer in shares. The Tribunal rightly observed that, under these circumstances, there was no reason why the assessee should not be treated as dealer in shares in the relevant previous year also. The Tribunal also pointed out that nothing was shown on the record which would suggest that the acquisition and purchase of these shares was for anything other than normal commercial purposes or that the sales were not made in the ordinary course of business. The Tribunal held that the mere fact that the shares have been sold to a company belonging to the same group and under the same control would not be conclusive to show that the transactions were bogus and not in the normal course of business or were for an extra-commercial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns conclusively, that the sales were in the nature of a business transaction. The Tribunal also pointed out that the circumstance that the transactions were between companies in which the Thapar group had a controlling interest and also in respect of shares of companies belonging to the same group by themselves would not support the conclusion that the transactions were stage-managed, although it might arouse suspicion and call for closer scrutiny. In respect of both the said lots of shares, the Tribunal pointed out that there was nothing to show that the purchase of these shares had anything to do with the control of the companies concerned. The Tribunal relied upon the circumstance that the sales were at the market rates or going rates an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n irrelevant or partly irrelevant materials in holding that the transactions entered into by the assessee in the purchase and sale of shares of Bharat Starch and Chemicals Ltd. and Greaves Cotton and Co. Ltd. were genuine commercial transactions and whether such finding was not otherwise unreasonable or perverse ? (2) Without prejudice to question No. (1), whether, on the facts and in the circumstances of the case, the Tribunal's finding that the assessee entered into the transactions of purchase and sale of 25,000 shares of Bharat Starch and Chemicals Ltd. and 3,000 shares of Greaves Cotton and Co. Ltd. in the course of its business as a dealer in shares was based on no evidence or was otherwise unreasonable or perverse ? " In deciding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be scrutinised sentence by sentence merely to find out whether all facts have been set out in detail by the Tribunal or whether some incidental fact which appears on the record has not been noticed by the tribunal in its judgment. If the court, on a fair reading of the judgment of the Tribunal finds that it has taken into account all relevant material and has not taken into account any irrelevant material in basing its conclusions, the decision of the Tribunal is not liable to be interfered with, unless, of course, the conclusions arrived at by the Tribunal are perverse. Keeping these principles in mind in the present case, we find that the Tribunal has taken note of all the relevant circumstances which appear on the record and which were ..... X X X X Extracts X X X X X X X X Extracts X X X X
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