The Income tax Officer brought the profits arising out of the sale of the companyliery to tax as business profits.
The High Court agreed with the Tribunal.
The tax payer was number carrying on business in dollars, but the transactions in dollars were intimately related to their principal business and the profits earned by sale of dollars were treated as profits taxable as business profits.
On the outbreak of war, in September 1939.
The Income tax Officer disallowed, the claim.
The Company claimed to deduct this loss from its income assessable to tax in the assessment year 1950 51.
To finance the purchases and the expenses of this Organisation the Company bought dollars in the United Kingdom through its bankers who remitted them to the banking accounts of the Company in the United States, and it was the practice of the Company to accumulate a large holding of dollars each year before the leaf season companymenced.
D. In Gloucester Railway Carriage and Wagon Co. Ltd. The Commissioners of Inland Revenue 1 the tax payer carried on the business of manufacturing wagons for sale or hire.
The Company never bought dollars for the purpose of resale as a speculation.
Appeals from the judgment and order dated August 29, 1963 of the Calcutta High Court in Income Tax Reference No.
the appellant Company, at the request of the Treasury, stopped all further purchases of tobacco leaf in the United States, and, as a result, the Company had on hand, a holding of dollars accumulated between January and August, 1939.
On September 30, 1939, the Company was ordered under the Defence Finance Regulations, 1939, to sell its surplus dollars to the Treasury, and, owing to the rise in the rate of exchange, the sale resulted in a profit to the Company.
The order was companyfirmed in appeal by the Appellate Assistant Commissioner and the Income tax Appellate Tribunal.
The Company companyducted a Dry Ice Factory at Lahore.
8,756/ was a profit in the nature of revenue and was subject to tax under the Indian Income tax Act ?
The factory was sold in September 1948 to the Indo Pakistan Corporation Ltd. The purchaser took over the factory on October 1, 1948, but the price was finally settled in December, 1949.
The loss was suffered in the 1 12 T. C. 720.
Whether, on the facts and in the circumstances of the case, the loss of Rs.
Sachin Chaudhuri, T. A. Ramachandran and D. N. Gupta, the appellant in both the appeals .
The tax payer sold some of the wagons which were formerly hired out.
By the sale the Company suffered a loss of Rs.
1594 and 1595 of 1968.
The companytention of the tax payer that the transaction being an isolated one, the profit was in the nature of a capital profit on the realisation of an investment was negatived.
It was held by the Court of Appeal that the profit was liable to be included as profits of its trade under Sch.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
34,891/ was allowable as a deduction against the business income of the assessee for the assessment year 1950 51?
at profit.
Assessment year 1950 51 Whether, on the facts and in the circumstances of the case, the sum of Rs.
38 of 1960.
8,756 in the account year 1949 50.
The Judgment of the Court was delivered by Shah, J. In respect of assessment years 1949 50 and 1950 51 the Income tax Appellate Tribunal referred five questions to the High Court of Calcutta under s. 66 1 of the Indian Income tax Act, 1922.
It also works certain companyl mines.
The Appellate Assistant Commissioner agreed with that view, and the Tribunal companyfirmed the order.
The appellant a limited Company incorporated under the Indian Companies Act, 1913 carries on business as managing agents, dealers in shares and stocks, stores and spare parts of machinery and acts as insurance agents and manufacturers of carbon dioxide.
The profits realised in this transaction were held to result from the operation of the Companys business and properly includable in the companyputation of the Companys profits for assessment under Sch.
Narsaraju, S. K. Aiyar, R. N. Sachthey and B. D. Sharma for the respondent in both the appeals .
51,550 in the account year 1948 49 and Rs.
34,891.
51,550/ was A profit in the nature of revenue and therefore liable to tax under the Indian Income tax Act ?
The Company obtained a prospecting licence from the State of Korea for the Chirimiri Colliery in 1944 and after prospecting for companyl sold the companyliery, and thereby earned a profit of Rs.
