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PETITIONER: SARDAR INDRA SINGH AND SONS LTD.
Vs.
RESPONDENT: COMMISSIONER OF INCOME-TAX,WEST BENGAL.
DATE OF JUDGMENT: 23/09/1953
BENCH: SASTRI, M. PATANJALI (CJ) BENCH: SASTRI, M. PATANJALI (CJ) DAS, SUDHI RANJAN BOSE, VIVIAN HASAN, GHULAM BHAGWATI, NATWARLAL H.
CITATION: 1953 AIR 453 1954 SCR 167 CITATOR INFO : E&D 1959 SC 928 (8)
ACT: Income-tax, Act (XI of 1922), s. 10-Income-Sale of shares and securities-Company carrying on business as financiers and promoters of companies-Income from sale of securities- Whether assessable-Tests.
HEADNOTE: The question whether surplus arising from the sale of shares and securities is assessable as profits or gains or is only an appreciation of capital arising from a change of investment depends on whether the sales which produced the surplus were so connected with the carrying on of the assessee’s business that it could be fairly said that the surplus is the profits and gains of the business. 168 It is not necessary that the surplus should have resulted from such a course of dealing in securities as by itself would amount to the carrying on of a business of buying and selling securities. It would be enough if such sales were effected in the usual course of carrying on the business, or, in other words, if the realisation of securities is a normal stop in carrying on the assessee’s business....