COMMISSIONER OF INCOME TAX Vs. PANACHAND KHEMCHAND

JUDGEMENT

(1.) AT the instance of the Revenue, the Income -tax Appellate Tribunal, Ahmedabad, has referred the following two questions for our opinion under section 256(1) of the Income -tax Act, 1961 :

(2.) THESE questions arise in the background of the fact that the assessee, Messrs. Panachand Khemchand, submitted its income -tax return for the assessment year 1975 -76 and on scrutiny of the return, the Income -tax Officer held as under :

(3.) AGAINST that order, the assessee preferred an appeal before the Commissioner of Income -tax and the Commissioner of Income -tax took the view that the loss in the present case was not a loss in speculative business as per Explanation 2 to section 28 but it was a solitary transaction. That decision was confirmed by the Tribunal. Thereafter, at the instance of the Revenue, the Tribunal has referred the aforesaid two questions for our opinion.