9911796707
TMI Blog1933 (8) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... d with the statement in a case the Court may ask for an additional statement or alterations. In the present case the assessee in his application to this Court states that he carries on banking and money-lending business, and for the purpose of that business the assessee sells and purchases shares and Government securities; that for the last 30 years shares in different companies have been purchased from time to time by the assessee's father and after his death by the assessee, and at present the assessee owns about ₹ 13 lacs of shares at par value; that in the course of the 30 years the assessee has sold shares amounting to rupees one lac and a half only ; that in the books of the assessee he shows the dividend earned on the share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dends and not for the purpose of carrying on any business." The finding proceeds further that some years ago the question arose in regard to the British India Corporation in which shares had been purchased for over 30 years, and on two occasions these shares had been sold as the dividends declined. At that time it was held that the assessee was not carrying on any business in the purchase and sale of shares, but had only invested his money in shares in order to earn dividends. The assessee purchased the Tinnevelly Textiles Limited shares some 6 or 7 years ago; and he did not sell those shares, but the company had gone into liquidation in the year 1929-30. The Assistant Commissioner concluded that as the shares of the Tinnevelly Textil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness" in Section 2(4), Income Tax Act, and the provisions of Sections 4, 6 and 24. In Section 2(4), Income Tax Act, "business" is defined as follows: "'Business' includes any trade, commerce, or manufacture or any adventure or concern in the nature of trade, commerce or manufacture." This definition is no doubt wide so far as the activities are mentioned which may be included under the term "business." A distinction is however drawn between "business" as so defined and receipts which are of a casual and non-recurring nature mentioned in Section 4(3)(vii). This sub-section says that the Act does not apply to any receipts not being receipts arising from business or the exercise of a pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales, although he may make a number of purchases, and where the sales are made at long intervals after the purchases, the conclusions to be drawn is that he is not indulging in the business of speculating in these stocks and shares, but that he is investing his capital in these stocks and shares. In this view of the law it appears to us that the Assistant Commissioner has not made any error in drawing his conclusions from the facts which he found. Accordingly we do not see that we can with any advantage call upon the Commissioner of Income Tax to state a case. We therefore dismiss this application with costs to the Crown, which we assess at ₹ 75. One month is allowed to the Crown Counsel to certify the amount of the fee. Application ..... X X X X Extracts X X X X X X X X Extracts X X X X
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