https://www.taxtmi.com/caselaws?id=49708 Surplus from the sale of plant and machinery was not taxable as deemed profits because the second proviso to Section 10(2)(vii) applied only where the assets had been used for the purposes of the business during the relevant accounting year. The Court found that the machinery had not been used at all in that year, and that the sale occurred as part of the gradual winding up and realisation of assets rather than as an operation in furtherance of the business. The Tribunal had misdirected itself by ignoring the statutory requirement of use during the accounting year, so the referred question was answered against taxability. en-us Tue, 09 Feb 1954 00:00:00 +0530 Wed, 10 Sep 2014 08:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49708 Surplus from the sale of plant and machinery was not taxable as deemed profits because the second proviso to Section 10(2)(vii) applied only where the assets had been used for the purposes of the business during the relevant accounting year. The Court found that the machinery had not been used at all in that year, and that the sale occurred as part of the gradual winding up and realisation of assets rather than as an operation in furtherance of the business. The Tribunal had misdirected itself by ignoring the statutory requirement of use during the accounting year, so the referred question was answered against taxability. Case-Laws Income Tax Tue, 09 Feb 1954 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49708