C I T BIKANER Vs. P C MAHESHWARI

JUDGEMENT

(1.) THE present application by the Commissioner u/sec. 256 (2) of the Income-tax Act relates to Assessment Year 1985-86. THE application is at the instance of the assessee. THE assessee has claimed a loss of Rs. 86. 055 on account of transacting in shares of private limited companies by treating those shares to be stock-in-trade. THE Assessing Authority has computed the income of the assessee by deleting out of loss of Rs. 98,669 of which Rs. 86. 055 concerned in respect of shares of private limited companies. THE Assessing Authority made order under Sec. 143 (3) of the Income-tax Act by accepting income return as it is.

(2.) THE Commissioner of Income-tax u/sec. 263 held the order to be erroneous and prejudicial to the interest of the revenue and directed the Assessing Officer not to consider the amount of loss arising from the transactions in the shares of the private limited company under the head "profit & gains from business". Accordingly, the Assessing Authority gave effect to that order. In appeal against the assessment order, the CIT (Appeals) gave a partial relief by allowing the loss which werer elated to the dealings in the shares of public limited companies but aggrieved with the order of the Assessing Authority in respect of the loss arising out of the dealings in the shares of private limited companies in second appeal before the Tribunal, the issue was confined to as far as the assessee was concerned on account of disallowance of loss of Rs. 86,055 in respect of transactions of shares of private limited companies. That part of the assessee's contention was accepted following its decision in earlier years for 1983-84 and 1984-85 by which the Tribunal accepted the transaction of the shares of private limited companies as Stock- in-trade of the assessee.

(3.) THERE shall be no orders as to costs. .