TMI Blog1961 (7) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... art of the live-stock annually, to be replaced by fresh yielding stock. The question arose whether the proceeds of such sales are to be counted as part of the turnover of the firm liable to sales tax. 2. T.R.C. No. 82 of 1959 relates to the assessment for the year 1955-56 and No. 83 of 1959 for the year 1956-57. In these years, the proceeds of sales of dry cattle came to ₹ 11,270 and ₹ 15,890 respectively. The Sales Tax Officer included the above sums in the turnover of the petitioner's business for the relative years and assessed tax. The appeals by the firm before the Additional Appellate Assistant Commissioner, and before the Sales Tax Appellate Tribunal proved unsuccessful. Hence these petitions for revision under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s carried by the assessee for purposes of the assessment. We feel that sterilisation of part of the capital asset amounts to capital receipts, and the case relied on by the Tribunal deserves reconsideration. 6. We heard the matter at length, but were not persuaded to a view different from that in the prior decision. 7. Questions of capital assets or capital receipts do not arise in a sales tax assessment. Even under the income-tax law, profits or gains arising from a sale of a capital asset are now taxable. As regards sales tax, all the sales of a dealer in the course of his business attract taxation. 8. The contention of the assessee is that the firm is not a dealer in dry cattle, its business being only to deal in dairy products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not taxed as he did not sell any other motor vehicles . (iv) MohanIal Ramkisan Nathani v. The State(1)-Sale of two cars by the assessee was held not to attract tax as there was no other instance of his selling a car. 11.. These rulings only show that isolated transactions, not forming part of the business of the assessee, would not convert the vendor into a dealer, nor attract liability to sales tax. 12.. Whether one is a dealer in a particular commodity or not would largely depend on the volume and the regularity of one's transactions in the line. In MohanIal Ramkisan Nathani v. The State([1952] 3 S.T.C. 305), it is observed: The fact whether they constitute one of the lines of business will not necessarily depe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the benefit of their workmen and recovered the costs thereof by debiting the value against their wages. It was held that, as the supply of food-grains was not carried out with a view to earn profit, and in fact no profit accrued, the assessees were not liable to sales tax on the value of foodgrains. We are not sure whether a contractor's supplying food-grains to the workmen at the work-spot is not with a view to earn profit out of the work in which they were employed. Contentment and happiness among workmen will certainly contribute to earnestness in their works; and better out-turn must yield better profits. 15.. The learned Government Pleader drew our attention to the decision in Aryodaya Spinning Weaving Company Limited v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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