9911796707
TMI Blog1934 (12) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... "Whether the sum of ₹ 1,50,399, is assessable to tax." The facts of the case are that the assessee, who is a landowner and a money-lender and has an interest in certain cotton mills, purchased on the 22nd March 1926, in Court auction in O.S. No. 24 of 1925 on the file of the Subordinate Judge, Bezwada, the right title and interest of one Parthasarathi Appa Rao in the legacies le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the reversioners of the estate in question towards the amount due to him under the decree. He had also spent ₹ 46,625-15-0 (Rs. 39,800 in respect of the purchase and ₹ 6,825-15-0 in respect of the further litigation to which reference has been made). Deducting that sum of ₹ 46,625-15-0 from the amount realised by him, there was left a sum of ₹ 1,50,399, which was treated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in the nature of trade. The trading activities of the assessee were limited to lending money, owning land, if that can be called a trade, and having an interest in cotton mills and this is in no sense a transaction related to any of those activities. In this case the interest in the legacies was not even purchased from anybody who was indebted to the assessee in his money-lending business. It wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of purchasing very cheaply a large quantity of paper. He effected the purchase and within a short time after his return to England sold the whole consignment to one person at a considerable profit and it was held that the profits in question were liable to assessment to income-tax and to excess profits duty as being profits of an adventure in the nature of trade. The facts of that case are quit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly to require such a quantity for his private use." The view we take, of the matter is that case is certainly of no assistance to us, and that, with regard to this case, this was an isolated transaction in no way connected with any other trade or business activities of the assessee. That being so, we are unable to hold that it was an adventure in the nature of trade and if that is so, then t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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