W L KNOPP Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question referred to us by the Income-tax Appellate Tribunal is : Whether in the circumstances of this case there is material to justify that the ventures in question were ventures in the nature of trade.

(2.) THE assessee applicant is a partner in a firm of stock brokers carrying on business in Madras. In the year of accounting - 1st February, 1942, to 31st January, 1943 -he sold shares in various companies on 12 occasions and as a result of these sales he made substantial profits amounting to Rs. 6,887-12-0. THE Income-tax Officer included this amount in the assessment for the year on the ground that it represented profits arising from business. This view was upheld by both the Appellate Assistant Commissioner and the Income-tax Appellate Tribunal.

(3.) THE answer to the question must be in the affirmative. THE applicant will pay the costs of the reference, Rs. 250.