| Case ID |
2428f67d-eec8-413d-93a1-5ace03b65779 |
| Body |
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| Case Number |
CASE REFERRED No. 61 OF 1955 |
| Decision Date |
Feb 09, 1960 |
| Hearing Date |
|
| Decision |
The court held that the income derived by the assessee from house properties could not be charged to business profits tax under the provisions of the Business Profits Tax Act, 1947. The court emphasized that income must be chargeable under section 10 of the Indian Income-tax Act, 1922, to fall within the scope of business profits tax. The income from the house properties was computed under section 9 of the Income-tax Act, which excluded it from being taxed under section 4 of the Business Profits Tax Act. The decision ultimately favored the assessee, affirming that income not chargeable under section 10 could not be included in the business profits tax computation. |
| Summary |
In the case referred to as 'CASE REFERRED No. 61 OF 1955', the Madras High Court examined the applicability of the Business Profit-Tax Act, 1947, concerning income derived from house properties by an assessee engaged in money lending. The court determined that such income did not fall within the purview of business profits tax as defined under section 4 of the Act. The ruling clarified that only profits chargeable under section 10 of the Indian Income-tax Act, 1922, are subject to business profits tax. Furthermore, it was established that the income from house properties, which was computed under section 9, was excluded from this taxation framework. This case serves as a critical reference point for understanding the intersection of property income and business profits tax obligations, particularly for entities involved in lending operations. The decision reinforces the legal principles governing income taxation, particularly the requirement that income must be chargeable under specific provisions to be included in taxable profits. This case is particularly relevant for tax practitioners and firms engaged in similar business activities, emphasizing the importance of correctly identifying the nature of income sources and their tax implications. |
| Court |
Madras High Court
|
| Entities Involved |
Not available
|
| Judges |
Rajagopalan, J.,
Ramachandra Iyer, J.
|
| Lawyers |
R. Kesava Iyengar,
K. Parasaran,
C.S. Rama Rao Sahib
|
| Petitioners |
Not available
|
| Respondents |
Commissioner of Income tax
|
| Citations |
1960 SLD 320,
(1960) 39 ITR 327
|
| Other Citations |
United Commercial Bank v. Commissioner of Income-tax [1957] 32 ITR 688,
CIT v. Calcutta National Bank Ltd. [1959] 37 ITR 171
|
| Laws Involved |
Business Profit-Tax Act, 1947,
Indian Income-tax Act, 1922
|
| Sections |
4,
2(3),
2(16),
9,
10
|