- (1.) This appeal by certificate arises from the decision of the High court of Calcutta in (Special Jurisdiction Income Tax) Matter No. 9 of 1963 on its file. That was a reference made to the High court under Section 66 (1) of the Indian Income-tax Act, 1922 to be hereinafter referred to as 'the act'. Two questions were referred to the High court by the tribunal. They are- (1) Whether on the facts and in the circumstances of the case, the proceedings under S. 34 (1) (b) of the Indian Income-tax, act, 1922, were validly initiated and the assessment made pursuant to the said proceedings was legal and valid. (2) Whether on the facts and in the circumstances of the case, the tribunal was justified in holding that the loss of Rs. 5,14,295. 00 on the sale of shares did not arise to the assessee from a share dealing business but was a loss on realisation of investments.
(2.) The High court answered both these questions in favour of the department and against the assessee. Aggrieved by that decision, the assessee had brought this appeal.
(3.) The relevant assessment year is 1953-54, the previous year ending in September/october, 1952.;