DALMIA CEMENT LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) -

(2.) THIS is a reference by the Income-tax Appeal late Tribunal under Section 66(1) of the Indian Income-tax Act, for the opinion of the Court upon the question - Is there any material in this case to come to a finding that the assessees transaction in purchase and sale of the Rohtas shares was a business transaction and not an investment transaction ?

(3.) THE contention of the assessee company is that as it had surplus money in its hands it was invested in consequence of a resolution of the Directors passed on the 28th April 1937 which authorised the Managing Agents to invest up to Rs. 4 lacs and that the profits made on the scale of those shares in question were nothing more than an appreciation of capital and are not liable to be taxed. THE contention of the Income-tax Department on the other hand is that the assessee bought and sold the shares in pursuance of the objects mentioned in the Memorandum of Association referred to above and in course of doing business.