1969 (2) TMI 17 - SC - Income Tax

Balancing Charge - assessee s argument that the vendor and purchaser were same cannot be accepted. It has now been settled that in taxing a receipt to income-tax the authorities are concerned with the legal effect or character of the transaction and not the substance of the transaction - Assessee s appeal dismissed

Summary

The Supreme Court ruled that the excess sale proceeds over the written down value of a business can be considered income for tax purposes. The court emphasized that the legal character of a transaction is crucial in determining tax liability. The appeal was dismissed, and the decision of the High Court was upheld. (Case citation: 1969 (2) TMI 17 - Supreme Court)