https://www.taxtmi.com/caselaws?id=276848 A succession-to-trade provision applies where an acquired business retains its essential trading identity after absorption, even if it is brought within a larger company organisation. The decisive factors were that the same processes continued and the same products were manufactured, so the trade was treated as continuing separately for assessment purposes. The computation of profits under the statutory fiction had to reflect real production cost and actual profits; it did not permit inventing a sale between departments that never occurred or charging unrealised profits. On that basis, interdepartmental movement of goods was not to be treated as a notional sale. en-us Wed, 06 Dec 1939 00:00:00 +0530 Mon, 19 Nov 2018 14:24:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276848 A succession-to-trade provision applies where an acquired business retains its essential trading identity after absorption, even if it is brought within a larger company organisation. The decisive factors were that the same processes continued and the same products were manufactured, so the trade was treated as continuing separately for assessment purposes. The computation of profits under the statutory fiction had to reflect real production cost and actual profits; it did not permit inventing a sale between departments that never occurred or charging unrealised profits. On that basis, interdepartmental movement of goods was not to be treated as a notional sale. Case-Laws Income Tax Wed, 06 Dec 1939 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276848