SABYASACHI MUKHAKJI, J.

( 1 ) THIS is an application for review and reconsideration of an order passed by this court on 27th of June, 1974. The said order was passed in Income-tax Reference No. 265 of 1967. It appeals that in respect of the assessment year 1958-59, there was a reference to this court under Section 66 (1) of the Indian Income-tax Act, 1922, on the following two questions :" (a) Whether, on the facts and in the circumstances of the case, the loss of Rs. 54,934 suffered by the assessee in its transactions in hessian and gunny bags, which were concluded by transfer of P. D. Os. is loss arising from speculative transactions under Explanation 2 to Section 24 (1) of the Indian Income-tax Act, 1922 ? (b) If the question No. 1 is answered in the affirmative, whether, on the facts and in the circumstances of the case, the loss of Rs. 54,934 could be set off against the profit from other business activities of the assessee under Section 10 (1) notwithstanding the provisions contained in the first proviso to Section 24 (1) of the Indian Income-tax Act, 1922 ?"

( 2 ) FOLLOWING the decision of the Supreme Court in the case of Raghunath Prasad Poddar v. Commissioner of Income-ta

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