MRS. SAROJINI RAJAH vs COMMISSIONER OF INCOME-TAX, MADRAS — 1971 PTD 1094

Citation: 1971 PTD 1094

Court: Madras High Court

Year: 1971

Decision Date: 1971-02-07

Parties: MRS. SAROJINI RAJAH vs COMMISSIONER OF INCOME-TAX, MADRAS

Headnotes

Case cited as 1971 PTD 1094

Judgment Text

Court Name: Madras High Court Judge(s): K. Veeraswa mi, Ramaprasada Rao Title: MRS. SAROJINI RAJAH vs COMMISSIONER OF INCOME-TAX, MADRAS Case No.: Case No. 156 of 1964 Date of Judgment:1971-02-07 Reported As: 1971 PTD 1094 Result: N/A JUDGMENT JUDGMENT VEERASWAMI, J.---The matter relates to the assessme nt year 1953-54 and the material point turns on whether certain shares, which the assessee held in the Vanguard Fire and General Insurance Company Limited, were an investment or constituted her stock-in-trade. The revenue as well as the Tribunal have considered that they were purchases by her as an investment. This controversy as to the character of her shareholding became relevant in the context of her claim for allowance of Rs. 42,534 as business loss incurred by her on the sale of the shares during the accounting year ended March 31, 1952. The Income-tax Officer was of the opinion that, having regard to the circumstances; there was every possibility of the transaction being one to book a loss for the purpose of reducing the tax liability of the assessee and, apart from it, the transaction also should be regarded but as an investment. Out of the holding by one Udaya Limited, in which the assessee was a director and her husband was the managing director, she purchased on March 31, 1952, 32,850 shares at Rs. 3-13-0 each, and for a total consideration of Rs. 1,25,342-8-0. On January 13, 1953, she sold 20,000 out of them through a broker of Bombay by name Naraindas and…

Read the full judgment on Al Wakeelo — Pakistan's AI-powered legal research platform.