https://www.taxtmi.com/caselaws?id=49537 SC dismissed the appeal, affirming HC's rulings that the acquisition of the managing agency via purchase of a large block of shares was a capital, not trading, transaction. Although the purchasers were share dealers and bought with borrowed funds, those facts did not show an intention to trade the shares; the purchase aimed to secure the managing agency. Consequently the loss on sale of the shares was capital in nature and could not be treated in the trading account by valuing at cost or market price lower. The Tribunal was correctly not ordered to refer the suggested question. en-us Mon, 05 Dec 1960 00:00:00 +0530 Mon, 03 Nov 2025 15:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49537 SC dismissed the appeal, affirming HC's rulings that the acquisition of the managing agency via purchase of a large block of shares was a capital, not trading, transaction. Although the purchasers were share dealers and bought with borrowed funds, those facts did not show an intention to trade the shares; the purchase aimed to secure the managing agency. Consequently the loss on sale of the shares was capital in nature and could not be treated in the trading account by valuing at cost or market price lower. The Tribunal was correctly not ordered to refer the suggested question. Case-Laws Income Tax Mon, 05 Dec 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49537