- (1.) The appeal was admitted on 28th March, 2007 pertaining to the Assessment Year 2001-02. The question formulated at the time of admission reads as follows:-- "Whether on the facts and in the circumstances of the case a company carries as its principal business, acquisition of shares, debenture, debenture stock or securities issued by the Government local authority or other marketable securities of like nature could be termed as any other company as contemplated under Section 73 of the Income Tax Act, 1961."
(2.) After the appeal was taken up for hearing both the learned counsel suggested that the question formulated at the time of admission should be reframed. After hearing them the question, to be decided, has been reformulated as follows: "Whether in a case where loss resulting out of dealing in shares is more than the income arising out of loans and advances it can be said that the principal business of the assessee is not of granting loans and advances in the light of explanation appended to Section 73 of the Income Tax Act."
(3.) The fund deployment position has been indicated by the learned Tribunal in its impugned judgment and order as follows:-- "Comparative Statement of Deployment of Funds: Comparative Statement of Income:;