TMI Blog1977 (4) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... have been referred for the opinion of this court : " 1. Whether, on the facts and in the circumstances of the case, depreciation is allowable on the 1/6th share in S. B. Sugar Mills, Bijnor, which the assessee had acquired from Seth Shiv Prasad? 2. Whether, on the facts and in the Circumstances of the case, the Tribunal was justified in holding that the loss of Rs. 3,90,750 arising on sales o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputing the income of the family the income-tax authorities disallowed this loss as being a capital loss. The Tribunal found that the assessee was not a dealer in shares and that the said shares of Jaswant Sugar Mills Ltd. were acquired as an investment by the assessee-family. The assessee did not adduce any evidence to show that it sold the shares as stock-in-trade. Admittedly, the shares wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... those circumstances the Supreme Court held that the loss resulting in a particular year from sale of securities had to be treated as revenue loss and not capital loss. That decision has no application to the present case inasmuch as the assessee in the present case was not dealing in shares and the sale of shares was a solitary and isolated transaction apart from being in favour of the individual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me in the hands of the assessee and assessable to income-tax. But in the present case the assessee never claimed deduction of loss on the basis of the sale of shares being an adventure in the nature of trade. The transaction in shares was not in the line of the business of the assessee. Hence, the above decision has no application to the present case. For the reasons stated above, we answer bot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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