Judgement

Patanjali Sastri, C.J.I.: This is an appeal from a judgment of the High Court of Judicature at Calcutta answering a question referred to it by the Income-tax Appellate Tribunal under S. 66, Income-tax Act, 1922.

2. The appellant is a private limited company incorporated in the year 1935 under the Indian Companies Act with the following objects, among others, set out in the memorandum of association :

To carry on and undertake any business, transaction, operation or work commonly carried on or undertaken by bankers, capitalists, promoters, financiers, concessionaires, contractors, merchants, managers, managing agents, secretaries and treasurers.

To purchase or otherwise acquire, and to sell .... . . . stock, share. . . . . . business concerns and undertakings.

To invest and deal with the moneys of the company not immediately required for the company s business upon such securities and in such manner as may from time to time be determined.

3. The company held a large number of shares in other incorporated companies and was realising some of its holdings and acquiring large blocks of shares in other companies. In the return for the assessment year 1938-39, the company showed a los