GOVINDAN K Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question referred to this court under section 66(2) of the Income-tax Act ran :

(2.) THE assessee carried on trade as a commission agent at Madras. Among the several trading activities of his, both in the relevant accounting year and the preceding years, was the purchase and sale of shares, which the Tribunal rightly characterised as a speculative business. He was not a share broker. For the accounting year preceding the assessment year 1947-48, his profits from his transactions in shares was computed at Rs. 13,272. He had sustained losses in the years preceding the relevant accounting year. After adjusting the losses sustained towards the profits computed for assessment in the assessment year 1947-48, there was still a balance of Rs. 8,321. THE contention of the petitioner was that this sum of Rs. 8,321 should be adjusted towards his income from his other trading activities. That contention was negatived by the departmental authorities and by the Tribunal. THE Tribunal held that under the provisions of section 24(2) of the Income-tax act, the assessee was not entitled to have this sum of Rs. 8,321 adjusted towards his other income, because his business in shares was a different business from that of the commission agency business which he had carried on. It is the correctness of this decision that has been challenged by the assessee before us.

(3.) REFERENCE answered in the affirmative.