1953 (3) TMI 30

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....g on the business as sole selling agents. To carry on the latter business the assessee had an office at Kanpur. Under the Sugar Control Order, 1942, the Sugar Controller for India issued a notification No. 32 S.-C. (2) 42, dated April 25, 1942, to the following effect:- "In exercise of the powers conferred by clause 3 of the Sugar Control Order, 1942, the Sugar Controller for India hereby notifies the 30th April, 1942, as the date after which no producer shall dispose of, or agree to dispose of, or in pursuance of any agreement entered into on or before that date make delivery of, any sugar except (i) to a recognised dealer, or (ii) to a person specially authorised by the Controller to acquire sugar on behalf of the Central Governm....

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....e selling agency office at Kanpur. This expenditure was incurred between the dates 1st of October, 1944, and 7th of March, 1945. It appears that the directors of Shankar Sugar Mills Ltd. on the 7th of March, 1945, passed a resolution that the selling agents will not be given any more brokerage for sale of sugar after the 1st of October, 1944. It also appears, though the fact is not clearly set out in either the statement of the case or the order of the Appellate Tribunal, that though the selling agents could no longer work as selling agents by reason of the Government notification, the company continued to pay them brokerage up to 30th of September, 1944, on sale of sugar made by the company direct to the dealers nominated by the Government....

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....30th of September, 1945, the assessee did not enter into any agreement and did not receive any sugar from the company, nor did they do any work as selling agents nor were they paid any brokerage. These may be relevant considerations, but the question whether a business is being carried on or not must depend in each case on its own facts. A company may not obtain or be able to execute a single business contract for months and yet it may be deemed to carry on its business if during the period of lull and inactivity it is kept alive, retains its registered office and holds meetings etc. It is not necessary that a business to be in existence should have work all the time. There may be long intervals of inactivity and a concern may still be a go....