Judgment

Shah, J.-This appeal is filed by UCO Bank, Calcutta against the judgment and order dated 25th July, 1991 passed by the High Court of Calcutta in Income Tax Reference No. 73 of 1989. At the instance of revenue, the Income Tax Appellate Tribunal referred the following two questions for the opinion of the High Court under Section 256(1) of the Income Tax Act, 1961 for the assessment year 1982-83 :-

“1. Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in cancelling the CIT’s order under Section 263 of the Income-tax Act holding that the case of State Bank of Travancore v. CIT Kerala (158 ITR 102) is not applicable to the facts of the present case?

2. Whether on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the notional loss in the investment trading (India) to the extent of Rs. 7,45,35,029 by working out a difference between the book value of shares as shown in the final account and their market price as on the last due of the accounts, is admissible to be deducted from the book profits of the assessee bank?”

2. The High Court answered both the questions