( 1 ) THIS last desperate attempt of the department to rope in an amount which has apparently escaped assessment must also be held to have failed. The petitioner is an Indian company dealing in shares. In its return for the assessment year 1959-60 it claimed a loss of Rs. 2,41,472 in respect of its share dealing business. The shares, on the sale of which the loss was claimed, included 1,393 bonus shares of Hastings Mills Ltd. which the assessee had valued in its books at the face value of Rs. 100 each. The assessment for that year was made by the first respondent herein under Section 23 (5) of the repealed Income-tax Act, 1922, disallowing the claim for the said loss of Rs. 2,41,472 on the ground that the said loss did not arise in the normal course of the assessee's business. On the assessee's appeal from the said assessment order, by his order dated the 11th December 1964, the Appellate Assistant Commissioner allowed the entire claim for loss of Rs. 2,41,472 on the ground that the said loss arose in the normal course of the assessee's business. On the 28th July, 1965, the respondent-Income-tax Officer passed necessary orders under Section 31/154 of the Income-tax A