CHAMPALAL BAID Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference under s. 66(2) of the IT Act, 1922, relates to the asst. yr. 1949-50, the corresponding year being 2005 R.M. (from 17th April, 1948 to 6th April, 1949). The question of law referred to us is as follows :

(2.) THE said question has arisen out of the following facts : THE assessee, assessed as an individual, was a holder of a large number of shares. He had been doing transactions in shares in the past, but in the relevant year of account there was neither any purchase nor sale of shares. THE assessee valued the said shares at the beginning of the year of account at Rs. 1,80,589 and at the end of the year at Rs. 1,65,869. On the basis of this valuation he claimed a loss of Rs. 15,002. According to the ITO the shares in question were held by the assessee by way of investment and not as stock-in-trade and he, therefore, treated the loss claimed as a loss arising from revaluation of investment and disallowed the same. THEreafter, the assessee appealed to the AAC and the Tribunal unsuccessfully.

(3.) IN the premises the question should be answered in the affirmative and against the assessee who will pay the costs of this reference.