Suhas Chandra Sen, J. - (1.) The Tribunal has referred the following questions of law to this court under Section 256(1) of the Income-tax Act, 1961 : "1. Whether, on the facts and in the circumstances of the case, the sums of Rs. 46,208 (RA No. 550), Rs. 2,36,794 (RA No. 552), Rs. 2,95,680 (RA No. 554), Rs. 3,61,890 (RA No. 556), Rs. 3,13,722 (RA No. 557), Rs. 6,50,193 (RA No. 559) and Rs. 5,61,571 (RA No. 562) paid by the assessee-company for the purchase of loom hours during the respective accounting periods relevant to the assessment years 1958-59, 1959-60, 1960-61, 1961-62, 1962-63, 1963-64 and 1964-65 constituted capital expenditure in its hands and were not deductible accordingly under Section 37(1) of the Income-tax Act, 1961, in the computation of its total income for the aforesaid years.
(2.) Whether, on the facts and in the circumstances of the case, the company's sale of loom hours in each of the accounting periods relevant to the assessment years 1963-64 and 1964-65 resulted in respective capital gains of Rs. 77,572 (assessment year 1963-64) and Rs. 2,58,838 (assessment year 1964-65) assessable under Section 45 of the Income-tax Act, 1961 ?
(3.) If the answer to the common question No. 2 above is in the affirmative, whether the said capital gain in each of the said years was chargeable as short-term capital gain and not as long-term capital gain ?;