https://www.taxtmi.com/caselaws?id=27854 Surplus realised by a financial institution on sale of securities purchased from surplus funds and encashed when lending needs arose was treated as trading profit, not capital gain. The Court applied the settled test of nexus with business activity and held that the securities were only an interim deployment of funds, not an investment made to create a capital asset. For a lending concern, money functions as stock-in-trade, and realisation of readily convertible securities to meet business requirements is a normal incident of carrying on business; the resulting surplus was therefore taxable as a trading receipt and not as a capital receipt. en-us Thu, 05 Jul 1984 00:00:00 +0530 Tue, 16 Feb 2010 13:59:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27854 Surplus realised by a financial institution on sale of securities purchased from surplus funds and encashed when lending needs arose was treated as trading profit, not capital gain. The Court applied the settled test of nexus with business activity and held that the securities were only an interim deployment of funds, not an investment made to create a capital asset. For a lending concern, money functions as stock-in-trade, and realisation of readily convertible securities to meet business requirements is a normal incident of carrying on business; the resulting surplus was therefore taxable as a trading receipt and not as a capital receipt. Case-Laws Income Tax Thu, 05 Jul 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27854