COMMISSIONER OF INCOME TAX Vs. BHOORMAL CHITTARMAL COTTON

JUDGEMENT

(1.) THE Commissioner of Income-tax, Jodhpur, has submitted an application under Section 256(2) of the Income-tax Act, 1961, for a direction to the Income-tax Appellate Tribunal, Jaipur Bench, Jaipur (" the Tribunal "), to refer the following two questions for the opinion of this court which are said to arise out of the Tribunal's order dated June 21, 1979:

(2.) WHETHER, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal was justified in not disallowing the aforesaid loss of Rs. 12,865 on the ground that it pertained to the preceding year and not to the assessment year 1970-71 ? "

(3.) THE Tribunal was influenced by the fact that there was no evidence of any kind suggesting that the assessee and Shri Shreeniwas Jugal Kishore, Nimbahera, had entered into an agreement, oral or written, constituting a partnership and that within a period of two to three months, the transactions had been done which resulted in a loss and so an inference should be drawn that it was a joint venture. THE Tribunal came to the conclusion that there was no evidence in respect of the partnership between the assessee and Shri Shreeniwas Jugal Kishore, Nimbahera, or that they had formed an association of persons. THE bales, which are 180 in number, were purchased jointly with Sreeniwas Jugal Kishore, Nimbahera. All the bales that were purchased were sold in one lot. THE total loss from the transaction was Rs. 17,096.50. Loss of Rs. 12,865 was entered in the account books of the assessee being 12 annas share of the loss in the transaction of sale of cotton bales. A sum of Rs. 4,240.33 was the share of loss of Shri Shreeniwas Jugal Kishore, Nimbahera. It comes to 4 annas share.