1929 (12) TMI 7

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....case, which really were adopted by him for the convenience of the assessee the information acquired by his department that the assessee had engaged in other transactions, must be excluded from consideration, and that this matter must be judged upon the hypothesis that the transaction or adventure in question was an isolated transaction in the year of assessment. The facts are that when the books of the assessee were examined, he having been in regular business as a cloth and grain merchant, which regular business he had given up, an item was found relating to the year of assessment of Rs. 60,000 entered as having been received as brokerage in the transaction of the sale of the Mills of Messrs. John and Company of Agra to Messrs. Chare and C....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... arising from business or the exercise of a profession, vocation or occupation does not come within the exception. 2. The next question is whether on the facts stated, it was open to the Commissioner to hold that this was a receipt arising from business or the exercise of an occupation. He says, and we agree with him, that the particular transaction is certainly one of the business of a broker, and that it comas within the definition of business. The assessee at one time appears to have taken the same view, for he entered it in his books as a business transaction, and that fact alone constitutes evidence upon which the Commissioner might rightly find, as he has done, that it was a receipt arising from business. But in our view the defini....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion of the Privy Council in the case of Commissioner of Taxes v. Melbourne Trust Ltd. (1914) A.C. 1001. In our opinion these cases have no application to the question before us, as they deal with the well-known problem, much debated, as to whether in a particular case the realisation of assets is merely an enhancement of capital, or the result of carrying on trade, so as to be in substance and in fact the receipt of income. In taking the view we do, we found ourselves mainly upon the use of the word "nature" in the exemption. The word is not "occurrence". If the language were "a casual or non-recurring occurrence", there would be much to be said for the contention of the assessee. But the expression "nature" appears to us to be a word used ....