https://www.taxtmi.com/caselaws?id=168505 Unclaimed balances received by auctioneers were not trading receipts assessable to income tax because the money belonged to customers when received and was recorded only as a liability. Later partnership arrangements and internal transfers to partners' capital or current accounts did not create a fresh receipt or convert a non-trading amount into taxable trading income. A liability written down or eliminated in the accounts cannot change the character of the original receipt for tax purposes, and the customer liability was not merely contingent in the relevant sense. The assessment on the disputed balances was therefore set aside in favour of the taxpayers. en-us Thu, 26 May 1938 00:00:00 +0530 Tue, 10 Mar 2015 15:39:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168505 Unclaimed balances received by auctioneers were not trading receipts assessable to income tax because the money belonged to customers when received and was recorded only as a liability. Later partnership arrangements and internal transfers to partners' capital or current accounts did not create a fresh receipt or convert a non-trading amount into taxable trading income. A liability written down or eliminated in the accounts cannot change the character of the original receipt for tax purposes, and the customer liability was not merely contingent in the relevant sense. The assessment on the disputed balances was therefore set aside in favour of the taxpayers. Case-Laws Income Tax Thu, 26 May 1938 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168505