( 1 ) IN this reference at the instance of the assessee, following questions have been referred by the Tribunal for our opinion in respect of assessment year 1975-76:- (I) Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in confirming the disallowance of short term capital loss amounting to Rs. 1,24,545. 00 arising out of loss incurred on account of sale of shares in question to M/s. Ambernath Investments Pvt. Ltd. which was a wholly owned subsidiary company of M/s. Kaveri Investments Pvt. Ltd. , which, in its turn was a wholly owned subsidiary company of the assessee company ? (II) Whether the Tribunal was justified in interpreting various relevant provisions of various Acts such as Section 45, 47 (iv) (a), 2 (17), 2 (26) of the I. T. Act as well as section 4 etc. of the Companies Act, 1956, while arriving at the conclusion that the loss in question was incurred on account of transaction between the parent company and the subsidiary company and hence the same was disallowable u/s. 47 (iv) (a) of the Act in spite of the fact that the assessee company did not hold all the share capital of M/s. Ambernath Investments Pvt. Ltd.