1965 (3) TMI 19 - SC - Income Tax

Whether profit made by the appellant by sale of the property to Ranada Prasad Saha was taxable under section 10 of the Indian Income-tax Act,1922?

Held that:- It appears that Ranada Prasad Saha on coming to learn that the factory was for sale approached the company after the sale deed was executed in favour of the appellant and he was informed that it had already been sold to the appellant. Thereafter Saha contacted the appellant and agreed to purchase the property. The property purchased was not such that an inference that a venture in the nature of trade must have been intended by the appellant in respect thereof may be raised. A person purchasing a jute press may intend to start his own business even if he is not already in that business, or he may let it out on favourable terms. The property purchased by the appellant was capable of being let out and it had in fact been let out by the company before the date of sale in favour of the appellant. It was capable of fetching annual income, and there is no evidence that at the material time it could not be reasonably let out. Appeal allowed.