JUDGMENT

KANIA, J. :—This is an appeal filed by the Commissioner of Income-tax, Calcutta, by Special Leave against an order of a Division Bench of the Calcutta High Court declining to direct the Income-tax Appellate Tribunal (hereinafter referred to as "the Tribunal") to refer to the court for determination of certain questions raised by the Commissioner of Income-tax.

2. It is necessary to set out a few facts for the appreciation of the controversy in this appeal. In its assessment for the Assessment Year 1959-60 the respondent-assessee claimed deductions inter alia in respect of the loss on the sale of certain shares of Bharat Starch and Chemicals Ltd. and Greaves Cotton & Co. Ltd. for the relevant previous year. The respondent-assessee had sold in the relevant previous year 2500 shares of Bharat Starch & Chemicals Ltd. to M/s. K.C. Thapar & Sons Ltd., a company belonging to the same group. These shares were purchased on 22nd Feb. 1958 and were sold on 31st March, 1959. The loss claimed was of Rs. 26,465/-. The Income-tax Officer concerned disallowed this loss on the ground that the sale price was shown at Rs. 2.50 per share whereas the market quotation on 31st March, 1959 was Rs.