1954 (2) TMI 1 - SC - Income Tax

Whether on the facts and in the circumstances of this case is the surplus of ₹ 13,05,144 arising out of the sale of the plant and machinery of the sugar factory chargeable under Section 10(2)(vii) ?

Held that:- Even if the sale of the stock of sugar be regarded as carrying on of the business by the company and not a realisation of its assets with a view to winding up, the machinery or plant not being used during the accounting year at all and in any event not having had any connection with the carrying on of that limited business during the accounting year, Section 10(2)(vii) can have no application to the sale of any such machinery or plant. In this view of the matter, the answer to the question should be in the negative and we answer accordingly. Appeal allowed.