COMMISSIONER OF INCOME TAX Vs. LAZOR SYNTEX LIMITED

JUDGEMENT

(1.) In this case the relevant Assessment Year is 1992-1993. An Assessment order was passed by the Assessing officer holding that the losses incurred by the Assessee on the sale of debentures and equity shares cannot be allowed as they were contrived losses.

(2.) The said order was confirmed by the Commissioner of Income Tax (Appeals) in an Appeal. The Income Tax Appellate Tribunal had passed an order allowing the claim of the Assessee, by setting aside the orders of the Assessing Officer and Commissioner of Income Tax (Appeals).

(3.) Thereupon, the Petitioner had filed a Reference Application under Section 256(1) of the Income Tax Act, 1961 , seeking reference on two substantial questions of law: