Judgment

SARKARIA; J.:- This appeal is directed against the Judgment, dated 24-1-1969, of the High Court of Delhi answering in the affirmative the following question referred to it under Section 66 (1) of the Indian Income-tax Act, 1922 (for short, the Act) by the Commissioner of Income-tax:

"Whether on the facts and in the circumstances of the case the capital loss of Rs. 28,662/- could be determined and carried forward in accordance with the provisions of Section 24 of the Indian Income-tax Act, 1922, when the provisions of Section 12B of the Income-tax Act,1922 itself were not applicable in the assessment year 1955-56."

2. The assessee respondent is a Private Limited Company. The assessment year under reference is 1955-56 and the relevant previous year is from 1-5-1953 to 30-4-1954. On 10-1-1952 the assessee purchased 1124 shares of M/s. Intercontinent Travancore Pvt. Ltd. at a cost of Rs. 1,12,400/- from M/s. Escorts (A & M) Ltd. In the relevant accounting year ending on 30-4-1953 the assessee received 562 bonus shares from the same company. It thus acquired a total number of 1686 shares. On 3-953, i.e. during the relevant previous year the assessee sold all these 1686 shares to M