Tuesday, December 6, 2011

Compilations of case law : SALE OF OTHER ASSETS



Purchase of silver bars when prices were going to rise due to war and sales made at rising levels – Adventure in the nature of trade.

Tribhuvandas Vallabhdas Vs CIT (Bom) 61 ITR 518

Wisdom Vs Chamberlain (CA) 74 ITR 306

Rosewood trees after felling were dressed and sold - Assessee not a dealer in trees - isolated transaction - capital gains only and not business

C.G. Thimmaiah Vs CIT (Kar ) 148 ITR 741

Import of 4 Cement Plants – Intention of re-sale was there – Adventure in the nature of trade

Dalmia Cement Ltd Vs CIT (SC) 105 ITR 633

Transactions of acquiring leases and granting sub-leases of coal mines, were in the nature of trading - Salami received is revenue receipt.

Karanpura Development Co. Ltd. Vs CIT (SC) 44 ITR 362

Purchased mortgage decree – As a result of execution proceedings, realized excess money-Business profit.

Jaldu Manikyala Rao Vs CIT (Mad) 28 ITR 220, 54 ITR 409.

Assessee took over the liability to pay the shareholders of a company controlled by him knowing that claims will not be made by the share holders – Adventure in the nature of trade – Business income.

R. Dalmia Vs CIT (Del) 137 ITR 665

Assessee advancing money to another to further litigation with a condition that in case of borrower succeeds, the assessee should get a share in the proceeds – Business.

Goyaprasad & Chotey Lal, IN RE (All) 3 ITR 177

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