HARSHAD J.CHOKSI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) By this reference under section 256(1) of the Income-tax Act 1961 ("the Act"), the Income-tax Appellate Tribunal ("the Tribunal") has referred the following question of law for the opinion of this court.

(2.) Briefly the facts leading to this reference are as under:

(3.) On appeal, the Commissioner of Income-tax (Appeals) upheld the finding of the Assessing Officer to the extent of Rs. 44.98 lakhs after having allowed an amount of Rs. 2.60 lakhs as a business loss. He also held that the amount of Rs. 11.81 lakhs was a speculation loss and could not be allowed as a trading loss. So far as the balance amount of Rs. 33.17 lakhs was concerned the Commissioner of Income-tax (Appeals) held that the same could not be considered as a trading loss.