TaxTMI 
TaxTMI 
1969 (2) TMI 8
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....rofit in the nature of revenue and therefore liable to tax under the Indian Income-tax Act ? " Assessment year 1950-51 " (3) Whether, on the facts and in the circumstances of the case, the sum of Rs. 8,756 was a profit in the nature of revenue and was subject to tax under the Indian Income-tax Act ? (4) Whether, on the facts and in the circumstances of the case, the loss of Rs. 34,891 was allowable as a deduction against the business income of the assessee for the assessment year 1950-51 ? " The appellant, a limited company incorporated under the Indian Companies Act, 1913, carries on business as managing agents, dealers in share and stocks, stores and spare parts of machinery and acts as insurance agents and manufacturers of carbon....
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....aining a reasonably higher price at the sale... The profits thus acquired cannot be treated as a capital asset. " In answering question No. (4) the High Court observed : " The loss of Rs. 34,891 sustained by the assessee after the sale of Dry Ice Factory at Lahore in September, 1948, cannot be treated as a loss of the business of sale, inasmuch as the Tribunal found as a fact that the loss not having occurred in the relevant accounting year was referable to the transaction of business during a period when the business completely ceased before the commencement of the accounting year. . . " Counsel for the company urges that prospecting for coal under a licence obtained from the State of Korea was not part of the business operations of ....
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....in Janki Ram Bahadur Ram v. Commissioner of Income-tax : " . . . . no single fact has decisive significance, and the question whether a transaction is an adventure in the nature of trade must depend upon the collective effect of all the relevant materials brought on the record. But general criteria indicating that certain facts have dominant significance in the context of other facts have been adopted in the decided cases. If, for instance, a transaction is related to the business which is normally carried on by the assessee, though not directly part of it, an intention to launch upon an adventure in the nature of trade may readily be inferred. A similar inference would arise where a commodity is purchased and sub-divided, altered, treate....
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....f dollars accumulated between January and August, 1939. On September 30, 1939, the company was ordered under the Defence (Finance) Regulations, 1939, to sell its surplus dollars to the Treasury, and, owing to the rise in the rate of exchange, the sale resulted in a profit to the company. It was held by the Court of Appeal that the profit was liable to be included as profits of its trade under Schedule D, Case I. The taxpayer was not carrying on business in dollars, but the transactions in dollars were intimately related to their principal business and the profits earned by sale of dollars were treated as profits taxable as business profits. In T. Beynon & Co. Ltd. v. Ogg the taxpayer carrying on business as coal merchants, ship and insu....
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....has not been told to us. The assessee was carrying on business of coal mining. The prospecting of coal is a part of the coal mining business. Therefore, in our opinion, the transaction of prospecting, developing and selling the colliery is a transaction in the nature of a business. Therefore, the profit arising from the sale is a profit in the nature of revenue and has been rightly brought to tax. " Our task would have been lightened if the Tribunal had stated the findings in greater detail. Nevertheless the Tribunal has found that the company was carrying on the business of coal mining and prospecting of coal was a part of the coal mining business and on that account the transaction of prospecting, developing and selling the colliery was....
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....s income, profits or gains under any other head in that year : . . . . (2) Where any assessee sustains a loss of profits or gains in any year, being a previous year not earlier than the previous year for the assessment for the year ending on the 31st day of March, 1940, under the head 'profits and gains of business, profession or vocation' and the loss cannot be wholly set off under sub-section (1) the portion not so set off shall be carried forward to the following year and set off against the profits and gains, if any, of the assessee from the same business, profession or vocation for that year . . . " By sub-section (1) the loss of profits or gains suffered under any head in any year was liable to be set off against the income, profi....