1965 (10) TMI 4 - HC - Income Tax

Partition of HUF - Money Lending Business - it cannot be hold that what was obtained as capital at the partition was given such treatment as to invest it with the character of stock-in-trade of the money-lending business

Summary

The High Court of Madras ruled that properties obtained as capital at partition were not treated as stock-in-trade of the money-lending business. The court found that the properties were dealt with separately and not purchased, leading to the decision in favor of the assessee. The Tribunal's inclusion of the profit from the properties in the chargeable income was overturned.