http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 8
PETITIONER: THE COMMISSIONER OF INCOME-TAX, BOMBAY CIRCLE II
Vs.
RESPONDENT: THE NATIONAL SYNDICATE, BOMBAY.
DATE OF JUDGMENT: 01/11/1960
BENCH: HIDAYATULLAH, M. BENCH: HIDAYATULLAH, M. DAS, S.K. SHAH, J.C.
CITATION: 1961 AIR 398 1961 SCR (2) 229 CITATOR INFO : D 1965 SC 33 (6) R 1971 SC2274 (7)
ACT: Income-Tax--Business carried out for a part of the year--Computation--If must be for the whole year--Indian Income-Tax Act, 1922-(11 of 1922) s. 10(2)(Vii).
HEADNOTE: The National Syndicate, a Bombay firm, acquired on January 11, 1945, a tailoring business as a going concern for Rs. 89,321 which included the consideration paid for sewing machines and a motor lorry. Soon after the purchase the respondent found it difficult to continue the business, therefore closed its business in August, 1945. Between August 16, 1945, and February 14, 1946, sewing machines and the motor lorry were sold at a loss. The respondent closed its account books on February 28, 1946, showing the two losses and writing them off. For the assessment year 1946-47, the. respondent claimed a deduction under s. 10(2)(Vii) of the Indian Income Tax Act. The Appellate Tribunal held that the sales of machines and the motor lorry were made in the course of the winding up of the assessee’s business after the business had been stopped and that, therefore,...