( 1 ) AT the instance of the Commissioner if Income-tax, the Income-tax Appellate Tribunal referred the following questions of law to this court for its opinion under s. 256 (1) of the I. T. Act, 1961 (for short "the Act") :"whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the assessee has not carried on any business in speculation and, hence the loss claimed should be allowed as business loss ?"

( 2 ) THE reference relates to the assessment years 1969-70 to 1974-75 (both years inclusive ). The question arising for consideration is whether the assessee is entitled to claim loss suffered by him in respect of certain contracts entered into by him which were eventually settled otherwise than by delivery. The Revenue contends that, inasmuch as these contracts were settled otherwise than by delivery, the loss arising in respect of such transactions, being transactions of a speculative nature within the terms of s. 43 (5) of the Act, cannot be set off against the assessees income from business in view of the provisions contained in s. 73 (1) of the Act. The assessee resisted the above view of the Department and