https://www.taxtmi.com/caselaws?id=62056 Surplus arising on closure of a long-term chitty was held not taxable merely because it represented excess receipts over subscriptions. The receipt was treated as casual unless the Department showed a nexus with the assessee's business; on the facts, the unusually long duration, the assessee's non-participation in the auctions, and the character of the arrangement showed an investment activity rather than a trading venture. Mere payment from business funds was insufficient to prove that the subscription was undertaken for financing business. The amount was therefore not assessable to tax. en-us Thu, 14 Aug 1975 00:00:00 +0530 Mon, 17 Jan 2011 18:42:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=62056 Surplus arising on closure of a long-term chitty was held not taxable merely because it represented excess receipts over subscriptions. The receipt was treated as casual unless the Department showed a nexus with the assessee's business; on the facts, the unusually long duration, the assessee's non-participation in the auctions, and the character of the arrangement showed an investment activity rather than a trading venture. Mere payment from business funds was insufficient to prove that the subscription was undertaken for financing business. The amount was therefore not assessable to tax. Case-Laws Income Tax Thu, 14 Aug 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=62056