1990 (8) TMI 109

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..... e-tax Act, 1961, the Tribunal has referred the following questions for the assessment year 1969-70 : "(1) Whether, on the facts and in the circumstances of the case, was the Tribunal right in allowing the full amount of loss or any part thereof on the sale of securities by the assessee ? (2) Whether, on the facts and in the circumstances of the case, was the Tribunal justified in treating the lo .....

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..... of U. P. Development Loan as a business loss ? 5. Whether, on the given facts and circumstances of the case, was the Tribunal justified in admitting the claim of the assessee that a partial partition among the members of the Hindu undivided family had taken place ? It would be seen that the two questions referred for the assessment year 1969-70 are also referred as questions Nos. 3 and 4 for th .....

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..... t though it is not engaged in dealing in Government securities, it was obliged to purchase them with a view to satisfy the Government officials with whom they have to deal every day in connection with their business. In short, their argument is that the said securities were purchased as a matter of business expediency. It is brought to our notice that an identical question was considered by the S .....

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..... this case does not expressly record any finding, it is clear that it approved that reasoning in the appeal for the preceding assessment year, namely, 1966-67. The Appellate Assistant Commissioner clearly held that the loss was incidental to the appellant's business. In short, he accepted the appellant's case. If so, the ratio of the judgment of the Supreme Court clearly applies. For these reasons .....

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..... and is consequential to the finding on question No. 1. The interest amounts referred to were not allowed by the Income-tax Officer on the ground that the partial partition has not been accepted by him. It is admitted that once the partial partition is accepted, these amounts ought to be given deduction. In view of the Tribunal's order, the said amounts ought to have been given deduction. Accordin .....

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