RAJA BAHADUR VISHESHWARA SINGH Vs. COMMISSIONER OF INCOME TAX BIHAR AND ORISSA IN ALL THE APPEALS

JUDGEMENT

(1.) THE following Judgment of the court was delivered by

(2.) THE assessee who is the appellant has brought these five appeals against the judgment and order of the High court of Patna by which it answered the two questions stated under s. 66(2) of the Indian Income-tax Act against the appellant and in favour of the Commissioner of Incometax.

(3.) IT was argued on behalf of the appellant that he was not carrying on the business of buying and selling shares 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 not profits. IT was also submitted that the appellant being a zamindar the buying and selling of shares was not his normal activity; that he had a large income and it was his surplus income which he was investing in buying the shares and whenever he found it profitable he converted his holdings and securities and for a number of years from 1931-32 he had been buying shares but he did not sell them; that the very nature of investments was such that they had to be constantly changed so that the monies invested may be used to the best advantage of the investor; and that the sales were really for the purpose of re-employing the monies that he had invested to his best advantage.