1. In view of our decision in -- Commr. of Income-tax v. Manecklal Chunilal Sons Ltd.; I. T. Ref. No. 16 of 1948 (Bom) (A), the contention which has been raised by the assessee on this reference cannot be accepted.

2. It appears that the assessee purchased 50: shares of the Bombay Dyeing and Manufacturing Co. Ltd. on 11-11-1950 for Rs. 49,1017- and on 9-1-1951 the Bombay Dyeing issued bonus shares of the face value of Rs. 507- one bonus share be-! ing issued for one Companys share held by the share-holder, and therefore the assessee company! received 50 bonus shares of the face value of Rs. 50/- each.

Then there were various transactions with which we are not concerned till we come to the assessment year 1952-53 corresponding to the financial year 1951-52 which is the previous year of the assessee company. At the beginning of the assessment year 1952-53 the assessee company held 350 shares of the Bombay Dyeing including 50 bonus shares. Out of these it sold 300 shares and the price realised by the sale of these 300 shares was Rs. 1,20,550/-.

According to the assessee company, by this transaction die assessee company had made a loss of Rs. 35,801/- The assessce company arrive