Business

Business undertakings must set their prices and all other terms of doing business independently of their competitors and trade associations if any.

Income-tax-Business-Purchase and sale of shares Profits whether of capital or revenue nature.Held, that the transactions were stamped with the character of commercial transactions and the profit realised by the appellant firm by the sale of the shares was Income liable to income-tax.

Business.-Share dealing-Bonus shares-Valuation. In the case of a dealer in shares who values his stock at cost, where bonus shares issued in respect of ordinary shares hold by him rank pari passu with the original shares, the correct method of valuing the cost to the dealer of the bonus shares is to take the cost of the original shares, spread it over the original shares and the bonus shares collectively and find out the average price or` all the shares.

Income-tax-Business - Several businesses carried on-One business stopped-Expenditure- in respect of stopped business Whether can be set off against income from other businesses Whether distinction between individual assessee and firm-Indian Income-tax Act, 1922, S. 10(1).

Business-Dealer in shares or investor-Mixed question of fact and law-Reference- Question whether there was material-Reframed-Scope of jurisdiction of High Court on a reference-Indian Income-tax Act, 1922, S. 66.

Business - Lease and business – Difference Assessee who owned powerlooms permitting R to carry on business of manufacturing handloom cloth under agreement-Fixed sum payable monthly to assessee as his share in net profits-Agreement, whether lease-Income, whether assessable as income from business or as "income from other sources"-Indian Income-tax Act. 1922. Ss. 10 & 12.

Business Business-Money-lending -Properties acquired in lieu of debt-Profit from sale of property-Whether business income-Indian Income-tax Act, 1922, S. 10.

Selling agent-Appointment of sub-agents and brokers for carrying out sale transactions-Sales Agent whether carries on business activities-Commission whether business income Partnership of selling agent-Whether entitled to registration Indian Income-tax Act, 1922, Ss. 10 & 26-A.

Company formed by film distributors for constructing vaults for storing and preserving films and providing other amenities to film industry-Income of company, whether' income from house property or business income-Tests-Income-tax Act, 1422, Ss. 9 & 10.

Will-Trustees-Power to invest and 'vary investments-Sale of shares-Whether trustees dealers in shires-Sale within three years of purchase-Beneficiary dealer in shares-Effect.

Cloth dealers-Committee formed for temporary period to take quotas and distribute goods Profit derived from transaction-Whether taxable Profit to be held in trust for benefit of dealers-Effect-Whether assessable under S. 41 Association-Dissolution-Notice issued and assessment made after dissolution-Validity-Reference-Additional legal argument on point raised before and considered by Tribunal-Income-tax Act, 1922, Ss. 10, 41, 44 & 66.

Income-tax Act, 1922, Ss. 2(4) do 10.

Property-owning company acquiring foreign exchange and selling for profit-Profit whether exempt or assessable as business income-"Adventure in the nature of trade"-Income-tax Act, 1922, S. 2(4).

Exemption in assessment of employee - Finance Department Notification No. 878-F of March 21, 1922-Income-tax Act (XI of 1922), Ss. 10(2)(xv) & 60.

Business Business-Adventure in the nature of trade-Purchase of land with jute press and warehouses thereon-Press not run by assessee

Sale-Transaction whether adventure in the nature of trade-Profit whether assessable to tax-Mixed question of law and fact-Indian Income-tax Act, 1922, Ss. 2(4) & 10-[Janki Ram Bahadur Ram v. Commissioner of Income-tax (1963) 50 I T R 350 reversed.]

Business-Malaya-Enemy occupation-Payment of debts in depreciated currency-Ordinance scaling down payments and reviving debts in part-Additional amounts received under Ordinance-Whether income-Additional amounts paid-Whether business expenditure

Apportionment between capital and interest.

Business Business-Computation of profits-Purchase and sale of properties in different currencies-Conversion to common standard to arrive at real profit-Whether permissible.

Business Business - Computation of profits - Deductions-Whether expenditure or allowance must be necessarily capable of producing taxable income-Banking business - Investment in securities including tax-free securities-Interest on money borrowed-Extent of allowance-Indian Income-tax Act, 1922, S. 10 (2) (iii), (xv)[Commissioner of Income-tax v. N. S. A. R. Concern (1938) 6 I T R 194 dissented from].

Investment company-Dealing in shares-Bonus shares-Valuation.

­Exemption from tax-Business in respect to which tax was not assessed for some intermediate years-Earlier succession before 1939-Effect. A family consisting of three brothers, G, I and S, carried on business in timber and was assessed to income-tax in the status of an association of persons. In 1920, on behalf of the family, G entered into a partnership with A to carry on the business of contracts. The family was to finance the business and, in addition to interest on the capital brought in by it, it was entitled to a third share of profits. A died in 1927, and his widow and legal repre­sentatives relinquished their rights in the business and thereafter the family continued tire business in contracts.

­Dissolution-One partner taking over stock on hand-Basis of valuation of stock. The privilege of valuing the opening and closing stocks in a consistent manner is available only to a continuing business and it cannot be adopted where a business has come to an end and the stock on hand has to be disposed of in order to determine the exact position of the business on the date of the closure. Where a partnership, which has been valuing its opening and closing stocks at cost price when its business was continuing, dis­solves and one of the partners takes over the stock on hand, in order to arrive at the correct picture of the trading results of the partnership on the date when it ceases to function, the valuation of the stock on hand should be made on the basis of the prevailing market price. Therefore, that the partner who takes over the stock on hand values them at cost price is of no effect.

Business-Succession-Relief admissible where business " as a whole" is transferred or succeeded. In order that a person should be held to have succeeded another person in carrying on a business, profession or vocation, it is necessary that the person succeeding should have succeeded his predecessor in carrying on the business as a whole. Where a business is split up, and thereafter another person carries on a part of the business, he cannot `succeed' his predecessor in carrying on the business.

Dealing in shares-Shares transferred out of stock­-in-trade to investment account-Bonus shares received in respect of shares in investment account as well as stock-in-trade of business ­Profit realised by sale of original and bonus shares out of investment account-Whether income-Amount realised by sale of bonus shares received as part of stock-in-trade-Whether income­ Reference-High Court

Appellate Tribunal giving separate reasons-Orders of Income-tax Officer and Appellate Assistant Commissioner not made part of case-Jurisdiction of Court to refer to such orders-Income-tax proceedings-Principle of res­judicata. The assessee, a Hindu undivided family carrying on money­ lending business on a small scale and also the business of dealing in shares, transferred on the last day of the accounting period relevant to the assessment year 1943-44 curtain shares out of its stock-in-trade to an account styled investment account, so that. these shares would remain as investments for the family apart from the stock-in-trade of its business. The shares transferred to the investment account included 975 Kanpur Textiles ordinary and 500 such shares still remained as part of its stock-in-trade. In the proceedings for the assessment year 1943-44 the Income ­tax Officer accepted the transfer and valuing the shares trans­ferred to the investment account at market price brought to tax excess of the market price over the cost price, adding a remark that "in future no profit or loss will be taken on the investment shares."