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PETITIONER: THE ORIENTAL INVESTMENT CO., LTD.
Vs.
RESPONDENT: THE COMMISSIONER OF INCOME-TAX,BOMBAY.
DATE OF JUDGMENT: 22/05/1957
BENCH: KAPUR, J.L. BENCH: KAPUR, J.L. BHAGWATI, NATWARLAL H. DAS, S.K.
CITATION: 1957 AIR 852 1958 SCR 49
ACT: Income-tax-Reference to High Court-Questions of law- Investment company-Dealer or Investor-Mixed question of law and fact-Legal effect of facts found, a question of law.
HEADNOTE: The appellant company was incorporated as an investment company which by its memorandum of association enabled it, inter alia, to deal in investments and properties. For the purposes of assessment to income-tax the appellant claimed, for the assessment year in question, to be treated as an investor and not as a ,dealer on the ground that it did not carry on any business in the purchase or sale of shares, securities or properties. The Incometax Appellate Tribunal held that according to the company’s memorandum of association and its own assertions made all along in the past, it should be treated as a dealer in investments and properties and that its income arising from the sales of shares and properties should be taxed as business profits. The appellant’s applications for a reference to the High Court were rejected on the ground that no question of law arose out of the order of the Tribunal. Held, that the questi...