https://www.taxtmi.com/caselaws?id=49423 Whether a sale of chemicals and raw materials constitutes trading income or a capital realisation turns on factual indicators distinguishing ordinary-course-of-trade sales from winding-up realisations. The applicable test considers prior frequency and scale of sales, whether the sale formed part of continuing business operations or closure, contractual arrangements post-sale, and absence of a separate market valuation for the goods; a memorandum power to trade is insufficient without sustained trading. Applying those criteria, the transactions were characterised as winding-up/realisation sales and treated as capital realisation, not assessable as trading income; the revenue appeal failed. en-us Tue, 20 Mar 1962 00:00:00 +0530 Wed, 27 Aug 2014 11:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49423 Whether a sale of chemicals and raw materials constitutes trading income or a capital realisation turns on factual indicators distinguishing ordinary-course-of-trade sales from winding-up realisations. The applicable test considers prior frequency and scale of sales, whether the sale formed part of continuing business operations or closure, contractual arrangements post-sale, and absence of a separate market valuation for the goods; a memorandum power to trade is insufficient without sustained trading. Applying those criteria, the transactions were characterised as winding-up/realisation sales and treated as capital realisation, not assessable as trading income; the revenue appeal failed. Case-Laws Income Tax Tue, 20 Mar 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49423