Judgment

GROVER, J.:- This is an appeal from a judgement of the Gujarat High Court. Originally an appeal (C. A. 1993/68) had been brought by certificate but that certificates was found to be defective as no reason were stated therein for granting it. A petition for special leave, was, therefore, filed and the same has been granted. Both the appeals shall stand disposed of by this judgement. The assessee is a registered firm and carries on the business of commission agency and general merchants. It also does forward business. It is a member of the Saurashtra Oil and Oilseeds Association Ltd., Rajkot. During the assessment year 1958-59 the corresponding accounting period being the samvat year 2013 the assessee claimed to have incurred a loss of Rs. 3,40,443/- in certain transactions entered into with different people for the supply of groundnut oil. The transactions, according to the assessee, were non-transferable ready delivery contracts entered into with non-members of the Association. It was expected that these contracts would be performed but owing to certain reasons some of the contracts could not be performed and differences had to be paid. According to the assessee it had acte