TMI Blog1996 (12) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... for the relevant year ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the business in which the loss was originally sustained had been discontinued in 1975 ? 3. Whether, on the facts, the Tribunal was right in holding that the business carried on by the applicant during the relevant year was a different one ? " The assessee is a company and was engaged in the job work of flattening of wires supplied by Karnataka Steel and Wire Products Ltd. The assessee has taken on lease the premises belonging to Karnataka Steel and Wire Products Ltd., and set up its own machinery therein for purpose of its activities. On account of certain problems, K. S. W. P. closed down its factory in the y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce in the business though there was a temporary lull due to non-availability of plant and machinery and the business of purchase and sale of M. S. wire or sodalime was part of the same business since there was interlacing of funds and unity of control. On that basis it was pleaded that there was no discontinuance of business. Sri Indrakumar, learned senior standing counsel for the Department, submitted that the business of the job work of flattening of wires had come to an end in the year 1975 itself. Therefore that business was not carried on subsequently at all. The subsequent activity of the assessee is only a trading activity having changed over to the business of purchase and sale of sodalime and wires and therefore the two lines of b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the decisive test was unity of control and not the nature of the two lines of business. It is also noticed by the Supreme Court that the share business and the other business carried on by the assessee constitutes the same business within the meaning of section 24(2) of the Indian Income-tax Act, 1922, which is akin to section 72 of the Income-tax Act, 1961. In Standard Refinery and Distillery Ltd. v. CIT [1971] 79 ITR 589 (SC), the assessee was carrying on the business of manufacture of sugar and distillery as well as business of dealing in shares. The Supreme Court held that the share transactions as well as the business of manufacture of sugar and other commodities constituted the same business within the meaning of section 24(2) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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