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1964 (5) TMI 3 - SC - Income Tax
Whether the Free Press Company made a business profit of ₹ 2,14,090 under the proviso to section 10(2)(vii) of the Act ?
Whether the capital gain made by the Free Press Company is liable to be assessed in the hands of the Express Company, under section 26(2) of the Act ?
Held that:- The first item is not liable to tax and the High Court has given the correct answer to the first question submitted to it.
As we have held, the scope of sub-section (2) of section 26 is only limited to the income from the business, the share under sub-section (2) and the assessment and realisation under the proviso can only relate to the income from the business. The argument is really begging the question itself. In the result we agree with the High Court in regard to the answer it has given in respect of the second question. Appeal dismissed.