TMI Blog1975 (4) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... 00. During the previous year relevant to the assessment year 1964-65, he purchased some house property from the judgment-debtor for a consideration of Rs. 21,500. In part payment of the consideration for the sale, a sum of Rs. 8,000 due under the decree was set off and the balance of consideration was paid in cash. The Income-tax Officer considered that the assessee had made a profit of Rs. 4,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that the assessee did not get the assignment of the decree for the purpose of facilitating the purchase of the property itself. The Tribunal also confirmed this view and held that the facts and circumstances showed that the purchase was a business venture in the nature of trade and, in any case, as held in Rukmani Co. (P.) Ltd. v. Commissioner of Income-tax, it was incidental to the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealising the money he was able to purchase the property of the judgment-debtor by private negotiation and got the decree amount set off against the consideration made no difference. The absence of any prior or subsequent dealings of purchase of decree by the assessee has also no significance because even a first venture could be an adventure in the nature of trade and that there is no reason to ho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne of his business. A similar view was also taken by the Andhra Pradesh High Court in Jallu Manikyala Rao v. Commissioner of Income-tax, which also related to a case of assignment of decree. It was held that the transaction was a clear case of loaning out money with a view to reap a profit and an adventure in the nature of trade. We are, therefore, of the view that the profit made by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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