https://www.taxtmi.com/caselaws?id=49380 A winding-up sale of machinery after cessation of business was treated as a realisation of capital assets, not a sale in the course of carrying on business, so the surplus was not taxable as business profit under the balancing-charge proviso to section 10(2)(vii) of the Income-tax Act, 1922. The ruling also held that section 26(2), which applies to business income of a successor, did not extend to capital gains chargeable under the separate head in section 12B. On that basis, the machinery surplus and the capital gain could not be assessed in the hands of the successor company. en-us Thu, 07 May 1964 00:00:00 +0530 Fri, 22 Aug 2014 12:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49380 A winding-up sale of machinery after cessation of business was treated as a realisation of capital assets, not a sale in the course of carrying on business, so the surplus was not taxable as business profit under the balancing-charge proviso to section 10(2)(vii) of the Income-tax Act, 1922. The ruling also held that section 26(2), which applies to business income of a successor, did not extend to capital gains chargeable under the separate head in section 12B. On that basis, the machinery surplus and the capital gain could not be assessed in the hands of the successor company. Case-Laws Income Tax Thu, 07 May 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49380