Judgment

SHAH, J. : - The appellant is a public limited company doing business as a dealer in diverse commodities, and also in stocks and shares. The Company maintains its accounts according to the calendar year. In the year of account 1949 the Company suffered a loss of Rs. 3,71,700 in the sale of shares of public limited companies. In proceedings for assessment of income-tax for the assessment year 1950-51, the Income-tax Officer disallowed the claim to set off loss against the profits from transactions in other commodities in that year. The appeal filed before the Appellate Assistant Commissioner was unsuccessful. But the Appellate Tribunal upheld the claim of the Company.

2. In the meanwhile assessment for the year 1951-52 was completed, and the income of the Company was computed at Rs. 1,00,777. In proceedings for assessment of income for the assessment year 1952-53 the Income-tax Officer computed the income of the Company from its business at Rs. 3,39,899 and declined to take into account the loss suffered by the Company in the share transactions. In the view of the Income-tax Officer, even if the loss be treated as a trading loss it could not be set off against the business in