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1960 (3) TMI 8 - SC - Income TaxWhether on the above facts and circumstances of this case, the profits of the assessee were exempt from taxation under the Business Profits Tax Act of 1947 ? Whether the sum of ₹ 6,00,000 paid by the Government of Bengal during the chargeable accounting year ending on 31st December, 1946, is in the nature of subsidy and as such exempt from business profits tax under clause (c) of the proviso to section 4 of the Business Profits Tax Act ? Held that:- Neither the letter of the Central Board of Revenue nor the provisions of the Income-tax Act can operate in favour of the contention of the association raised before us and the first question was rightly answered in the negative. In the present case the payments were made for services rendered to Government and that would negative their being a subsidy. Appeal dismissed.
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