https://www.taxtmi.com/caselaws?id=289965 Surplus realised on sale of plant and machinery was not chargeable as profit where the assets had ceased to be used before the relevant accounting year. The governing test under section 10(2)(vii) required that the business be carried on during the year and that the building, machinery or plant sold formed part of the assets used in that year. Because the distribution business had already ceased and the assets had been transferred before the accounting year began, the deeming provision did not apply. The surplus was therefore held not taxable, and the reference was answered in the negative. en-us Mon, 20 Mar 1961 00:00:00 +0530 Tue, 01 Sep 2020 12:22:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289965 Surplus realised on sale of plant and machinery was not chargeable as profit where the assets had ceased to be used before the relevant accounting year. The governing test under section 10(2)(vii) required that the business be carried on during the year and that the building, machinery or plant sold formed part of the assets used in that year. Because the distribution business had already ceased and the assets had been transferred before the accounting year began, the deeming provision did not apply. The surplus was therefore held not taxable, and the reference was answered in the negative. Case-Laws Income Tax Mon, 20 Mar 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289965