COMMISSIONER OF INCOME TAX Vs. EMERALD COMMERCIAL LTD

JUDGEMENT

(1.) ON an application under Section 256(2) of the Income-tax Act, 1961, this court has directed the Tribunal to refer the following common questions in the case of both the assessees :

(2.) WHETHER, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the losses incurred in share dealings disallowed by the Income-tax Officer confirmed by the Commissioner of Income-tax (Appeals) are based on presumption and are not warranted by facts and evidence on record ?"

(3.) CONSIDERING the aforesaid facts and our view expressed in the case of CIT v. Carbo Industrial Holdings Ltd. , we answer question No. 1 whether the finding of the Tribunal is based on material, in the affirmative and whether this finding of the Tribunal is perverse, we answer it in the negative, i.e., in favour of the assessee and against the Revenue.