2007 (7) TMI 37

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....units of J. M. Mutual Fund. For the said purpose they invested a sum of Rs. 5 lakhs and borrowed the rest of the amount, namely, Rs. 95 lakhs. On February 10, 2001, dividend of Rs. 29,03,226 was declared. On February 11, 2001, they sold the units for Rs. 68,25,806. They stated to have incurred a loss of Rs. 1,50,771. 3 One of the questions which arose for consideration before the assessing auth....

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....failed to take into consideration; (i) that the appellants had a clear intention to earn profit as the amount of dividend earned by them should have been taken into consideration having regard to the decision of this court in G. Venkataswami Naidu and Co. v. CIT [1959] 35 ITR 594, and (ii) the same transaction entered into by the appellants herein in the subsequent years had been accepted as busin....

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....he judgment of this court in G. Venkataswami Naidu and Co.' one of the tests which is applicable for the purpose of arriving at a finding whether the transaction was "profit and gains from business" or "adventure in the nature of trade" is that similar operation which was similar to the one carried out by the assessee would be a relevant factor. We are, therefore, of the opinion that the interest ....