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1962 (9) TMI 49 - SC - Income TaxWhether the three appellants could be said to have derived "annual net profits from the mines" when the ore mined by them is not sold as such but is utilised for the production of finished products which the appellants sell? Whether a person could in law be said to derive "profit" from a mine when when the ore extracted is not sold him as such but is utilised by him for the purpose of manufacturing a finished product which he sells? Whether when a sale or a commercial transaction which might result in a profit takes place not of the commodity itself but of something into which it is transformed, "a profit" could be said to accrue by reason of the acquisition of the basic commodity? Held that:- Appeal dismissed. It is the function of the relevant assessing authorities to determine the annual profits in case of dispute and, besides, there is a residuary provision contained in section 76 of the Act under which in cases where the Collector is unable to ascertain the annual net profits he may determine it on the basis of 6 per cent. It is for these reasons that unable to accede to the submission that the charging provisions should be rejected as inane because of the want of an express machinery for determining the basis of apportionment in cases where the ore is sold not as ore but is converted into other products which are the subject of sale.
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