BHANDARI, J.

1. In this application under section 66(2) the Indian Income-tax Act the commissioner of Income tax prays that the following questions of law be referred to this Court namely.

"1. Whether there is any material on record on which the tribunal could find that the respondents loss on the sale of shares in 1948 was in the same business as comprised in the respondents business in sewing machines and accessories in which it made profits in 1949 ?

2. Whether on the facts and in the circumstances of the case the respondent was entitled to carry forward and set off under section 24(2), Indian Income-tax Act, 1922, the unabsorbed loss in sale of shares in 1948 against the profits of the machinery business in 1949."

2. The assessee in this case is a private limited company carrying on business in sewing Machine Co., (India) Ltd. It was incorporated in the year 1933, and was being assessed at Lahore till the assessment year 1947-48. The company was formed as its name indicates, to deal primarily in the purchase and sale of sewing machines and accessories although it had power under its memorandum of association to association to invests its funds in stocks and shares and a