1978 (10) TMI 34

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..... case, the sum of Rs. 4,280 received by the assessee during the relevant accounting year was assessable to tax under the I.T. Act ?" The question referred in I.T.R.C. No. 122 of 1976 is practically the same except that the sum received by the assessee was Rs. 4,230. The facts material for the decision of these two references are briefly these. The assessee, Maharashtra Apex Corporation Ltd., was carrying on the business of banking. It transferred its banking business to the Syndicate Bank Ltd. in the year 1953. The consideration received for such transfer was utilised by the assessee for investment in securities and for money lending. The assessee also received deposits. The securities purchased by the assessee included two categories o .....

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..... that their purchase could not be regarded as an adventure in the nature of trade. The Tribunal sought to derive support from the decision of the Supreme Court in G. Venkataswami Naidu Co. v. CIT [1959] 35 ITR 594. In these references, the learned standing counsel who appeared for the revenue contended that the purchase of these bonds by the assessee was an adventure in the nature of trade. He maintained that under the memorandum of association of the assessee-company, it had the power to buy and sell securities and that these bonds were purchased with the intention of making profit because their market prices were very much below their face values and the assessee knew that these bonds would fetch much higher amounts than what had been .....

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..... railway and the works. The British Government which succeeded to the East India Company, exercised such option. Thereupon, a compensation of pound 34 million was paid in equal annual instalments spread over a number of years. Question arose whether income-tax was payable on the full amount of each annual instalment or only so much of it as represented income. In the Court of Appeal, Stirling L.J. observed that on the face of the contract it appeared that each annual instalment contained principal money and a portion of interest which could be readily ascertained by a competent actuary. This view was affirmed by the House of Lords. Lord Lindley observed that such annual payment was nothing more than the payment of equal instalments of the pu .....

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