1980 (1) TMI 73

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..... ee questions have been referred by the Tribunal under s. 256(1) of the LT. Act : " 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the centrifugal pumps and motors constitute agricultural implements ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in directing the grant of higher deve .....

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..... on by holding that the centrifugal pumps and electric motors manufactured by the assessee did not constitute agri cultural implements within the meaning of item (9) of the Fifth and Sixth Schedules. On appeal, the AAC accepted the assessee's claim and when the matter came before the Tribunal at the instance of the ITO, the Tribunal confirmed the order of the AAC. The first two questions arise out .....

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..... ry (9) in the Fifth and Sixth Schedules to the I.T. Act as it also uses the identical expression " agricultural implements ". The first two questions are accordingly answered in the affirmative and in favour of the assessee. The third question arises on the following facts and it relates to the assessment year 1970-71. The assessee offered to subscribe for Govt. securities which wer qe issued, as .....

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..... subserve a business purpose, namely, the retention of the goodwill of the Govt. which was with to the well being of every business concern. It was also found that the purchases were made not with the intention that the securities should be retained as income-yielding investments, but with a view to dispose of them as quickly as possible in order to release the funds and profitably deploy them for .....

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..... losses were incurred. The only difference was that the purchase in that case was at the instance of road transport authorities with whom the assessee there had to deal. This court held that the loss incurred on the sale of bonds was allowable as a loss incidental to the business of the assessee. Following the said decision, we answer the third question in the affirmative and in favour of the asse .....

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