1948 (8) TMI 20

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The judgment of the Court was delivered by RAJAMANNAR, C.J.―The question referred to us by the Income-tax Appellate Tribunal is: "Whether in the circumstances of this case there is material to justify that the ventures in question were ventures in the nature of trade." The assessee applicant is a partner in a firm of stock brokers carrying on business in Madras. In the year of accounti....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....actions and sold 495 shares in 9 transactions. In the next year he purchased 452 shares and sold 415 shares in 5 transactions. In the next two years he purchased 616 and 105 shares, but did not sell any. During the period from 1st February, 1941, to 31st January, 1942, he purchased 426 shares in 7 transactions and sold 100 shares in one transaction, and in the accounting period he purchased 3446 s....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....unal could have come to the finding that the assessee was carrying on a trade. This is not a case in which the assessee purchased a large number of shares for investment and gradually or at a time disposed of such of the shares which he did not wish to retain. There is certainly enough material in this case for the Tribunal to hold that the assessee must have been purchasing these shares with a vi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is not merely a realisation or change of investment, but an act done in what is truly the carrying on, or carrying out, of a business. The simplest case is that of a person or association of persons buying and selling lands or securities speculatively, in order to make gain, dealing in such investments as a business, and thereby seeking to make profits." In the same case Lord Trayner said:&#821....