( 1 ) IN this reference under Section 66 (1) of the Indian Income-tax Act, 1922, hereinafter referred to as the Act, the following question of law has been referred to this Court by the Income-tax Appellate Tribunal: whether, in the facts and circumstances of the case, the Tribunal was justified in holding that the passing of Pucca Delivery Orders did not amount to actual delivery of goods and the loss incurred in the transactions of purchase and sale was speculative loss within the meaning of Explanation 2 to Section 24 (1) of the Income-tax Act 1922?

( 2 ) THE facts as stated in the Statement of the case are as follows. The assessee, Murlidhar Jhunjhunwalla, is an individual who deals, inter alia, in hessian and B Twill. During the previous year for the assessment year 1955-56, being 2011 Ratha Jatra ending on the 1st of July, 1954, the assessee contracted to sell 2700 bales of B. Twill to one Subhkaran Jhunjhunwalla under contract dated the 24th November 1953, delivery to be given in May, 1954, at the rate of Rs. 100/10/- per 100 bags and on the 5th May, 1954 the assessee contracted to purchase the same quantity of B Twill, namely, 2700 bales from Subhkaran Jhunjh