- (1.) On the reference application under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following question set out at page 2 of the statement of case for our opinion : "Whether, on the facts and in the circumstances of the case, the Tri-bunalwas justified in law in not confirming the finding of the Commis- sioner of Income-tax (Appeals) that the share loss claimed by the assessee was not genuine ?"
(2.) The assessee is an investment company. It claimed loss amounting to Rs. 48,390 incurred in the course of dealing in shares during the accounting period. The assessee purchased 3,000 shares of Gwalior Rayon Silk Mfg. Ltd. on November 16, 1981, as per contract note filed from the broker, Ram Narayan Kayan and Co. The sales of those shares were made through D. B. and Co. and the shares were sold on October 22, 1982, as per contract notes filed. The shares were delivered on November 9, 1982. The assessee-company produced the broker Ram Narayan Kayan with its books of account before the Income-tax Officer for examination. But the assessee-company could not produce the broker D. B. and Co. with books of account. On that ground, the Income-tax Officer has treated the share transaction as bogus and not genuine. So, he disallowed the loss claimed by the assessee on account of dealing in shares.
(3.) In appeal, the Commissioner of Income-tax (Appeals) confirmed the view taken by the Income-tax Officer.;