https://www.taxtmi.com/caselaws?id=5440 Surplus received by a dealer in shares on liquidation of a company was treated as a revenue receipt where the shares were consistently held as stock-in-trade. The Court reasoned that distribution of assets on liquidation is made to shareholders by reason of their shareholding, and the absence of a formal sale or transfer does not change the substance of the receipt. As the assessee had treated the shares as trading stock in earlier and relevant assessments, the surplus realised on liquidation retained the character of trading profit and was taxable in the hands of the assessee. en-us Tue, 02 Nov 1993 00:00:00 +0530 Mon, 24 Nov 2008 22:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5440 Surplus received by a dealer in shares on liquidation of a company was treated as a revenue receipt where the shares were consistently held as stock-in-trade. The Court reasoned that distribution of assets on liquidation is made to shareholders by reason of their shareholding, and the absence of a formal sale or transfer does not change the substance of the receipt. As the assessee had treated the shares as trading stock in earlier and relevant assessments, the surplus realised on liquidation retained the character of trading profit and was taxable in the hands of the assessee. Case-Laws Income Tax Tue, 02 Nov 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5440