1934 (12) TMI 13

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... The question referred to us is: "Whether the sum of Rs. 1,50,399, is assessable to tax." The facts of the case are that the assessee, who is a landowner and a money-lender and has an interest in certain cotton mills, purchased on the 22nd March 1926, in Court auction in O.S. No. 24 of 1925 on the file of the Subordinate Judge, Bezwada, the right title and interest of one Parthasar....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....a sum of Rs. 1,97,025 from the reversioners of the estate in question towards the amount due to him under the decree. He had also spent Rs. 46,625-15-0 (Rs. 39,800 in respect of the purchase and Rs. 6,825-15-0 in respect of the further litigation to which reference has been made). Deducting that sum of Rs. 46,625-15-0 from the amount realised by him, there was left a sum of Rs. 1,50,399, which was....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... or concern in the nature of trade. The trading activities of the assessee were limited to lending money, owning land, if that can be called a trade, and having an interest in cotton mills and this is in no sense a transaction related to any of those activities. In this case the interest in the legacies was not even purchased from anybody who was indebted to the assessee in his money-lending busin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... opportunity of purchasing very cheaply a large quantity of paper. He effected the purchase and within a short time after his return to England sold the whole consignment to one person at a considerable profit and it was held that the profits in question were liable to assessment to income-tax and to excess profits duty as being profits of an adventure in the nature of trade. The facts of that cas....