Judgement

MATHEW, J. - This is an appeal from the judgment of the High Court of Madhya Pradesh in a reference made at the instance of the assessee M/s. Sutlej Cotton Mills Supply Agency Ltd. (hereinafter referred to as the assessee ) by the Income Tax Appellate Tribunal (here- inafter referred to as the "Tribunal ) under Section 66 (1) of the Indian Income Tax Act. The question referred was:

"Whether the inference of the Tribunal that the profit of Rupees 2,13,150/- arising from the sale of 1,58,200 shares of the Gwalior Rayon Silk .Manufacturing (Weaving) Co. Ltd., is assessable as business profit is correct?"

2. When the reference came up for hearing before the High Court, the High Court found that although the Tribunal was of the view that the question referred was a mixed question of law and fact it had not stated all the facts and circumstances on which it based its conclusion that the profit of Rs. 2,13,150/- was a business profit and so the Court called for a supplementary statement of the case and a supplementary statement of the case was submitted to the Court by the Tribunal.

3. The material facts in the statement of the case were as follows. The assessee is a public limite