1961 (7) TMI 71

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....tivity of milch cows is not without limitation of time, the firm has necessarily to sell away a part of the live-stock annually, to be replaced by fresh yielding stock. The question arose whether the proceeds of such sales are to be counted as part of the turnover of the firm liable to sales tax. 2. T.R.C. No. 82 of 1959 relates to the assessment for the year 1955-56 and No. 83 of 1959 for the year 1956-57. In these years, the proceeds of sales of dry cattle came to Rs. 11,270 and Rs. 15,890 respectively. The Sales Tax Officer included the above sums in the turnover of the petitioner's business for the relative years and assessed tax. The appeals by the firm before the Additional Appellate Assistant Commissioner, and before the Sales....

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....as. 266), has urged that conversion into money of part of the capital assets, does not amount to the income from the business carried by the assessee for purposes of the assessment. We feel that sterilisation of part of the capital asset amounts to capital receipts, and the case relied on by the Tribunal deserves reconsideration." 6. We heard the matter at length, but were not persuaded to a view different from that in the prior decision. 7. Questions of capital assets or capital receipts do not arise in a sales tax assessment. Even under the income-tax law, profits or gains arising from a sale of a capital asset are now taxable. As regards sales tax, all the sales of a dealer in the course of his business attract taxation. 8. The ....

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....under the Sales Tax Act. (iii) Onkarmal Jodhraj Agarwal v. The State([1952] 3 S.T.C. 313)-Sale of two cars by the assessee was not taxed as he "did not sell any other motor vehicles". (iv) MohanIal Ramkisan Nathani v. The State(1)-Sale of two cars by the assessee was held not to attract tax as there was no other instance of his selling a car. 11.. These rulings only show that isolated transactions, not forming part of the business of the assessee, would not convert the vendor into a dealer, nor attract liability to sales tax. 12.. Whether one is a dealer in a particular commodity or not would largely depend on the volume and the regularity of one's transactions in the line. In MohanIal Ramkisan Nathani v. The State([1952] 3 ....

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....s used in the sense of buying or selling goods with a view to earn profit. The assessees carrying on business as engineers and contractors, supplied food-grains for the benefit of their workmen and recovered the costs thereof by debiting the value against their wages. It was held that, as the supply of food-grains was not carried out with a view to earn profit, and in fact no profit accrued, the assessees were not liable to sales tax on the value of foodgrains. We are not sure whether a contractor's supplying food-grains to the workmen at the work-spot is not with a view to earn profit out of the work in which they were employed. Contentment and happiness among workmen will certainly contribute to earnestness in their works; and bett....