https://www.taxtmi.com/caselaws?id=49423 A surplus from selling chemicals and raw materials during closure of a match business was held not to be taxable trading profit. The decisive test was whether the sale formed part of ordinary trading operations or was merely a winding-up transaction realising capital assets. The Court treated the business as having been closed so far as the owner's own operations were concerned, and found that isolated, insignificant chemical sales did not establish any sustained trading activity. The higher sale price obtained by including those items did not convert the transaction into a stock-in-trade sale. The surplus was therefore a capital realisation, and no trading income arose. 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 A surplus from selling chemicals and raw materials during closure of a match business was held not to be taxable trading profit. The decisive test was whether the sale formed part of ordinary trading operations or was merely a winding-up transaction realising capital assets. The Court treated the business as having been closed so far as the owner's own operations were concerned, and found that isolated, insignificant chemical sales did not establish any sustained trading activity. The higher sale price obtained by including those items did not convert the transaction into a stock-in-trade sale. The surplus was therefore a capital realisation, and no trading income arose. Case-Laws Income Tax Tue, 20 Mar 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49423