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1962 (3) TMI 5 - SC - Income TaxWhether there can be said to be a sale in the carrying on of the business in respect of the chemicals and other raw materials? Held that:- It is impossible to infer that the chemicals and raw materials were sold in the ordinary way of business or that the assessee-company was carrying on a trading business. The fact that the clause in the memorandum gave power to the company to sell chemicals cannot be used in this connection, because the evidence clearly shows that that clause was never used and the two sales of chemicals through the years were too petty in themselves to afford evidence of a continued or sustained trading in chemicals. In our judgment, this was a winding up sale with a view to realising the capital assets of the assessee-company and not a sale in the course of business operations, which alone would have attracted tax, if profit resulted. Appeal dismissed.
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