TMI Blog1975 (11) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... tax Appellate Tribunal has stated this case and referred the following question for opinion of the court : Whether, on the facts and in the circumstances of the case, the loss of Rs. 27,420 sustained by the assessee on sale of Government Loan Bonds is capital loss or revenue loss ? The assessee is a private limited company and the relevant assessment year is 1967-68. The company carries on bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nds was a condition to securing purchase orders from the State Government. It was further found that the assessee was not dealing in Government Bonds and did not have any stock-in-trade. Accordingly he came to the conclusion that the investment was of capital nature and loss therein could not be treated as revenue expenditure for computation of the assessee's total income. Accordingly, the claim o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ured by the assessee was as a result of purchase of the securities and, therefore, direct nexus has been established. In this view of the matter, the addition is deleted as business expenditure." Reliance has been placed by learned standing counsel on a decision of this court in the case of CIT v. Patnaik and Co. (P.) Ltd. [1979] 117 ITR 388 (Orissa) in support of his argument that where the ven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... finding that business was secured contemporaneously from the very department. This is not a case where the assessee claims that the loan bonds were purchased for any enduring return. On the other hand, the finding is that there is a boosting up in the business in the year itself. The link which was wanting in the reported decision of this court appears to have been found by the Tribunal as a fact. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
