https://www.taxtmi.com/caselaws?id=277300 The surplus on sale of shares was taxable as business income because the shares were acquired as an essential incident of a commercial arrangement to secure managing agency and directorship in an undertaking within the company's business objects. Their treatment in the balance-sheet as investments did not change the true character of the transaction, and the profit was not a mere realisation of capital or an exempt casual receipt. The fact that the gain was unexpected did not prevent it from being business profit, and the receipt also fell outside the special capital gains provision on the facts. en-us Mon, 18 Jun 1951 00:00:00 +0530 Fri, 30 Nov 2018 17:47:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277300 The surplus on sale of shares was taxable as business income because the shares were acquired as an essential incident of a commercial arrangement to secure managing agency and directorship in an undertaking within the company's business objects. Their treatment in the balance-sheet as investments did not change the true character of the transaction, and the profit was not a mere realisation of capital or an exempt casual receipt. The fact that the gain was unexpected did not prevent it from being business profit, and the receipt also fell outside the special capital gains provision on the facts. Case-Laws Income Tax Mon, 18 Jun 1951 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277300