TMI Blog1971 (1) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... t year 1949-50, corresponding to the accounting year which is the calendar year ending on December 31, 1948. The assessee-company was incorporated in 1942. At the beginning it owned a distillery at Unnao. It acquired a refinery in 1943. With effect from June 1, 1945, the assessee-company obtained on lease the New Sawan Sugar and Gur Refining Co. During the period from January 29, 1946, to April 23, 1946, the assessee-company purchased 41,300 shares of the said company for Rs. 12,17,006. On April 30, 1947, the entire block of shares was sold to Produce Exchange Corporation Ltd. for Rs. 8,46,750. The transaction resulted in a loss of Rs. 3,70,356. This loss was treated by the assessee as a trading loss for the assessment year 1948-49. After s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the case submitted by the Tribunal is incomplete and has omitted to state material facts bearing upon the question referred. For instance, it is not clear as to whether the assessee adduced any evidence as to why it started purchasing the shares of the lessor company about six months after the commencement of the lease. It is also not stated by the Tribunal whether there is any evidence of inter-relation between the purchase of shares and the manufacture of sugar. " In view of that conclusion this court directed the Tribunal to submit a supplementary statement of case on some of the points formulated in the order. The Tribunal accordingly submitted a supplementary statement of case. Even after considering that supplementary stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... There is a single trading and profit and loss account. In the same account the sales of spirit, sugar and molasses as well as stock and shares appear ; (2) The share transactions aa well as the business has been dealt with by a common organisation, though the sale of shares is a single transaction and the purchase of those shares is also more or less of the same character ; (3) The business of the company as well as the transaction relating to the shares were attended to as part and parcel of the assessee-company ; (4) A common fund was utilised both for business purposes as well as for the purchase of shares. A part of the overdraft of Rs. 6,80,046 taken from the bank on December 31, 1947, has been discharged from out of the incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee-company. Further there is neither inter-dependence nor unity between the two businesses. The concepts of inter-connection and inter-lacing, inter-dependence and unity are not free of ambiguity. But this court has laid down certain objective tests for finding out the existence of inter-connection, inter-lacing, inter-dependence and unity between two or more businesses. In Commissioner of Income-tax v. Prithvi Insurance Co. Ltd. this court ruled that inter-connection, inter-lacing, inter-dependence and unity were furnished by the existence of common management, common business organisation, common administration, common fund and a common place of business. This conclusion was reiterated by this very Bench in Produce Exchange C ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
