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1957 (5) TMI 7 - SC - Income TaxWhether on the facts of the case the commission earned by the managing agents for managing the Raymond Woollen Mills was income earned by the managing agents for services rendered and not income derived from property held under trust or for other legal obligations and, therefore, not exempt under section 4(3)(i) of the Income-tax Act ? Whether on the facts of the case the business carried on by the trustees falls to be considered under section 4(3)(i) or section 4(3)(ia) of the Income-tax Act ? Held that:- Confining ourselves solely to the language of section 4(3)(i), there is nothing in it which restricts in any manner the normal and accepted meaning of the word 'property,' and excludes business from its connotation. A reading of Tribunal's order shows that it was not really satisfied about its correctness. Accordingly, when the appellant applied for reference under section 66(1) of the Act, the Tribunal referred the second question also for the decision of the High Court. But in the view which the learned Judges of the Bombay High Court took that business was not property within section 4(3)(i), it became unnecessary for them to express an opinion on that question. Now that we have held that the word "property" in section 4(3)(i), standing by itself, is susceptible of a wider connotation so as to include business, it becomes necessary to consider the second question under reference. Learned counsel on both sides agree that it would be more satisfactory that this question should be remitted to the High Court for determination. Remand the case to the High Court of Bombay for a fresh disposal of the reference on a consideration of the second question
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