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TMI Blog1950 (10) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... tory plant was capital loss and could not be allowed as a deduction under Section 10(2)(vii) in computing the income from other businesses? (2) Whether the assessee is entitled to claim loss on the sale of the sugar factory plant made during the year of account or even on sales which took place prior to the year of account? The assessee, the Ganga Glass Works, is a limited company and it carries on the business of manufacturing glass in Balawali, District Bijnor. In the year 1935-36 the assessee started the manufacture of sugar. Both these factories were situate in Balawali, District Bijnor. The sugar manufacture was carried on only for two years and then it was stopped. A part of the machinery was sold in 1939 and the rest of it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erefore, became of importance whether the sugar manufacturing business was separate from the glass manufacturing business because under Section 10(2) the deductions allowable are the deductions for profits and gains of the same business. It is not denied by learned counsel for the assessee that if there were two separate businesses, the sugar manufacturing business having been closed in 1938, the plant or machinery that remained in the hands of the assessee was its capital and any loss incurred by it by sale of that plant or machinery would be a capital loss and not a revenue loss of the business that it was carrying on in the relevant accounting period 1942-43. It was settled in Scales v. Thompson (George) Co., Ltd. [1927] 13 Tax Cas. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... management. There was one profit and loss account and balance-sheet and bank interest and management expenses were charged without apportionment.........The General Commissioners decided that the company had carried on one business with two departments and the Court held that there was evidence to support the finding. On the other hand, in Scales (Inspector of Taxes) v. Thompson (George) Co., Ltd. [1927] 13 Tax Cas. 83, a company which carried on the business of shipowner and the business of under-writing, the Special Commissioners found as a fact that the company carried on two separate trades and the Court upheld their decision. It would be clear from the quotation given above that the only point of law that this Court can consider ..... X X X X Extracts X X X X X X X X Extracts X X X X
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