Raja Bahadur Visheshwara Singh And Othehs v. Commissioner Of Income-Tax, Bihar And Orissa

deriving the agricultural income" are used in the latter. If anything the words of the former Act are more .t: bl h d 1avoura e to t e respon ent. , . In Travancore Rubber and 'I ea Company Ltd. v. Commissioner of Agricultural Income Tax, Kerala ('), which was an assessment under the Travancore Cochin Act, we have decided the question of deducti-bility of sums expended for purposes of forking, manuring etc .. of immature rubber trees. That judg-ment will govern this case also. This appeal there-fore fail.s and is dismissed wi~h costs in this courL and the High Court. 196.0 The Commissiontr of Ag>icultural Income-ta.> The Calva'Y Mount Estates (P,ivat<) Ltd. Kapu' J. Appeal dismissed RAJA BAHADUR VISHESHWARA SINGH AND OTHEHS. COMMISSIONER OE' INCOME-TAX, BIHAR AN'D ORISSA (J. L. KA!'UR, M. HIDAYATULLAH and J.C. SHAH, JJ.) Income Tax-l'urihase and sate of shares and scwrities with surplus tn.oney-Such transactions, if amount to investment or busi· ness in shares~Test-Excess sale proceeds-If amou,nt to business profit or mere accretion to capital-Indian Income-tax Act, 1922 (II of 1922), s. 66(2). The appellant used to invest his cash surplus in shares and securities and maintained an account book called Book No. l relating thereto. During the period from 1930 to 1941-42 he purchased a large number of shares and securities which by the accounting year 1941-42 were of a value Rs. 14·91 lacs. He sold certain shares and se<;urities of the value of several lacs and made certain amount of profit on those sales. In 1940 the appel-lant borrowed a large amount of money from his brother, the Maharaj a of Darbhanga and opened a new account named account No. 2 \vhich contained all entries regarding shares purchased and sold out of the money borrowed from the Maharaja. In the assessment year 19-14-45 to 1948-49 the profits made by ti)e (1) [i961] 3 S.C.R. 279. Decetnbe" z5. 1960 appellant from purchase and sale of shares amounted to several lacs and the Income-tax Officer held those to be liable to income· Raja Bahadur tax as business profits. The Appellate Assistant Commissioner Visheshwara Singh upheld the assessments but excluded the profits for the years & Another 1944-45. On appeal by both the ;>arties the Appellate Tribunal v. held on the evidence that the appellant was to be regarded as a Cominissioner of dealer in shares and securities and therefore the profits were Income-ta<, Bihar assessable to income-tax. The High Court stated the following & Orissa two questions under s. 66(2) of the Income-tax Act and answered them in the affirmative:- "(r) Whether in the circumstances of the case, there is material to support the finding of the Appellate Tribunal that the assessee was a dealer in shares and securities with respect to each of the aecount and, therefore, liable to be taxed? (2) Whether having regard to the finding of the Appellate Tribunal in respect of 1941-42 assessment, it was open to the Appellate Tribunal in the present case to hold that the profits and transactions of sale and purchase of shares and securities amounted to profits of business and so liable to be taxed?" On appeal by special leave the appellant contended inter alia, that being a Zamindar the buying and selling of shares was not his normal activity and he did not carry on any such business but his purchases and sales were in the nature of investments of his surplus monies and therefore the excess amounts received by sales were capital receipts being merely surplus and r;ot profits. 196.0 3 WHA. HUSH ade tt feud] 287 (SCR 1961-1-287-296) ame fed staat wrHeat ct eos atst Fret J Had ay ad st AEST nae stHee Gsdus Set LU MOIS Jol ATS ('), nt fa Feeds autos wad v slys a ySae At, WHT wegde gusgeccays t edag, we ufe t GeH Set ygu abst dan OU acst Ct HeSoTdns als difeg dus fen aH @ ct foustes ada feHSet feg wuts wAgS Jae d we fa wees wR ot age fey ysfentiawuggd atMLS Uy ad fest Ju SJ Wx. Al. 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Tus’, Gsges" St (HSM wurst fev) | WMeTSS UT CHS 15 THN 1960 Say AT HSidedds’ A unisags J, 3d fT Un nite cus 2 fedDO fniemt gSWs Ucar Jet dde & JaH fAH eye fEH 6 uUis@ags t fedONS WHS adafimed t da feu sIst wHea-ad a9G MoS 66(2) t Sos VA TeHast o peryg fe3| WUIBATS VISIT CHIH HSA aS TU3d W3 Hee HIS oOat difus a Hs 1929 fea J Tet At ws weilsags 9 THadd Ut wee CoJu-gamny ct gu fed fest get At GAH S 30,000 gue HES sz st fest tom Htn ame feu <a a 48,000 gue ad fest famr Atl 1929 3»ni@agst 6 Ayਕ ਨ/ਬਰ 1 feg edd ast fem ANA] 1930 3S Ba AS 19h1-L2 Sa wNiwagst S eatfest feu Avg wS ystssht ude A fa Sa AS 1941-42 Ba 14.91 BYgue Aol fA fHyre t teas uuis@agst S Bu AS 1936-37 WS 1939-40 feuTHT 1.48 BY WS 1.69 BY Jue t Hyg ws ysissamr gum] «=H edadant & wHeS-ad fed HBAS Sot atst famr Hh Syt-He AS 1942-43 3 1946-47 feu »riis@ags’ 6 ay Ang ne ws fedat AD HS fev nUsags™& HATS’ GH A Be AS 1942-43 fed2,56,959 gues Sa Su WS 1946-h7 fed 33,174 gue 3a Al 16 gad, 1940 3, wisags & Hodes da wre fsb aeGedadde T yey als WS WAS fed Haid ct ude Set 10,000 gue ave"Se] UT SHU ST HISH 5 GH S 10 BY gue Ho feral t tes HS fA STGed sdede wT 3g3' J fom! »niw@ags" oyd 2 f6eH US UM fase? fevude ws ed ge Ang ct Hyg fey Ami nesgmi He fH we feo ey-ey HISHS clAIS fedHS US UteAS tgs ed IsSs ‘Sf Ay yodet Ayfgt neਲ ਮਲ।3 ca4 O'J/IYUstssmt oF AYUstssMt tt FIO'Jls].1347 Fs./NilRs 6.05 BYNil1939-40 (8 ਆਈਟਮ#) (nurs nuts) 1348 Fs./ 1940-41