Judgment

UNTWALIA, J.:- These six appeals have been heard together as a common question of law in relation to the assessment of the same assessee arises in them. Civil Appeals 2716-2718 of 1972 relate to the assessment years 1964-65, 1965-66 and 1966-67. The assessee appellant is a registered firm carrying on business at several places in the State of Kerla. Apart form its regular trade in various commodities, the assessee was also carrying on a business in speculation. Apropos the speculation business of the assessee the Income-tax Officer determined a loss of Rs. 40,510/-; a loss of Rs. 598 and a profit of Rupees 1,36,264/- for the assessment years 1964-1965, 1965-66 and 1966-67 respectively.

2. In apportioning the assessees income amongst its partners under Section 67 of the Income-tax Act, 1961, hereinafter referred to as the Act, the also apportioned the losses in speculation business in the two assessment years 1964-65 and 1965-66. The profit in speculation business as computed for the assessment year 1966-67 was also apportioned by the Income-tax Officer amongst the partners. The assessee contended before the Income-tax Officer that the losses in the speculation business coul