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TMI Blog1970 (12) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... ny operating on Faridkot to Ablu, Kotkapura to Bhagta and Bhatinda to Kotkapura routes. In the financial year 1953-54 it purchased 1,543 shares of Rs. 100 each of M/s. Janta Transport Co. Ltd., for Rs. 1,01,654 with a view to eliminate competition as that company was also operating on the said routes. The purchase of the shares of M/s. Janta Transport Co. Ltd. enabled the assessee to appoint two o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that decision the assessee-company filed an application under section 66(1) of the Income-tax Act, 1922, which was allowed by the Tribunal and the following question of law along with the statement of the case has been referred to this court for opinion : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the loss of Rs. 32,278 arising ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-company and M/s. Janta Transport Co. Ltd., and managing that the latter company would not object to the grant of route permits to the assessee-company ; (ii) by working and operating on the route permits of M/s. Janta Transport Company Ltd., and (iii) by sharing the income of M/s. Janta Transport Co. Ltd. in proportion to the number of share purchased by the company. In either case the assessee- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso a capital loss as the investment was not necessary for earning profits or carrying on the business of the assessee. Looked at from any point of view, the loss suffered by the assessee was of a capital nature and, for this reason, the answer to the question referred to us for opinion is in the affirmative, that is, in favour of the revenue and against the assessee. In the circumstances, however ..... X X X X Extracts X X X X X X X X Extracts X X X X
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