https://www.taxtmi.com/caselaws?id=276839 A succession-to-trade rule applies only where the acquired business continues in substance as the same taxable trade after a change in ownership. On these facts, the subsidiaries' wholesale manufacturing business depended on both manufacture and wholesale sale, but after transfer to the parent company the wholesale selling function ceased and profits were later earned through the parent's own retail business. The court rejected any notional split of retail receipts into wholesale and retail profits, holding that income tax is concerned with profits actually realised from the trade carried on. The parent company therefore did not succeed to the relevant trade, and the succession rule did not apply. en-us Fri, 02 Dec 1938 00:00:00 +0530 Mon, 19 Nov 2018 12:41:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276839 A succession-to-trade rule applies only where the acquired business continues in substance as the same taxable trade after a change in ownership. On these facts, the subsidiaries' wholesale manufacturing business depended on both manufacture and wholesale sale, but after transfer to the parent company the wholesale selling function ceased and profits were later earned through the parent's own retail business. The court rejected any notional split of retail receipts into wholesale and retail profits, holding that income tax is concerned with profits actually realised from the trade carried on. The parent company therefore did not succeed to the relevant trade, and the succession rule did not apply. Case-Laws Income Tax Fri, 02 Dec 1938 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276839