D.C.Chakravorti, J. - (1.) This appeal by the Income-tax Officer, "J" Ward, District V(A), is from the decision of Sabyasachi Mukharji J. taken on an application under Article 226 of the Constitution of India wherein the propriety of an order of the Income-tax Appellate Tribunal dated October 15, 1971, was challenged.
(2.) The case of the petitioners-respondent stated succinctly is as follows : The respondent, who is a businessman, deals in share transactions also. He has income from different sources. The ITO, "J" Ward, District V(A), Calcutta, assessed the respondent's total income, being Rs. 49,928, under Section 143(3) of the I.T. Act, 1961, in respect of the assessment year 1962-63. In his return for the relevant year the respondent had shown a loss of Rs. 23,100 in share transactions on the ground that he purchased through a share broker 15,000 ordinary shares of M/s. Hindusthan Motors Ltd. on 5th of March, 1962, for Rs. 3,17,400. The said shares were thereafter sold through another broker for Rs. 2,94,300 on March 29, 1962, and the respondent thus incurred a loss of Rs. 23,100 during the period from March 5, 1962, to March 29, 1962.
(3.) The ITO concerned held that the transaction in question was of a speculative nature and the assessee was accordingly not entitled to set off the said loss of Rs. 23,100 against any income other than speculative income.;