Circulating Capital - Definition - Law Dictionary Home Dictionary Definition circulating-capital

Definition :

Circulating capital, means capital employed in the trading operations of the business and the dealings with it comprise trading receipts and trading disbursements, while 'fixed capital' means capital not so employed in the business, though, it may used for the purposes of a manufacturing business, but does not constitute capital employed in the trading operations of business, Sutlej Cotton Mills Limited v. Commissioner of Income Tax, (1978) 4 SCC 358: (1979) 1 SCR 976: AIR 1979 SC 5 (9). [Income-tax Act (11 of 1922) s. 10 (1) (2)]