M/S. Dalmia Dadri Cement Co. Ltd vs The Commissioner Of Income-Tax(And ... on 28 April, 1958
7. Having heard the learned Counsel for the parties, we find that as early as on 6th May, 1969, the board of directors in its meeting had resolved that the margarine plant be installed and shown to the potential buyers with a view to prove that it could be worked satisfactorily and that its working would yield profits to the prospective buyers, which was followed in the subsequent meetings also. The plant was installed sometime in the year 1969, and it could get an offer only in the year 1973. It may be mentioned here that the Tribunal has noted that the ITO has not been able to prove on record although an opportunity was given to him that the said minutes were not genuine and, therefore, the Court is proceeding on the basis that the minutes of the meeting of the board of directors as reproduced in the order of the Tribunal are correct and genuine. The various minutes of the meetings of the board of directors amply prove that the intention from the very beginning was for selling the margarine plant by treating it as one of its business, therefore, it has rightly been treated by the Tribunal to be in the nature of adventure in trade. Further, merely because the respondent had shown it under the head 'plant and machinery' would not make any difference as entry of a transaction in the books of account is not determinative of the true nature of the transaction. As held by the apex Court in the case of Dalmia Cement Ltd. (supra) even an isolated transaction is capable of falling within the definition of 'business'.