Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1958 (10) TMI 5 - SUPREME COURTWhether on the facts of this case any income accrued to Messrs. Vyas and Dhotiwala as the result of their associating themselves as financiers in the scheme for the distribution of standard cloth ; and, if so, whether such income was assessable in their hands ? Held that:- Section 4(3)(i-a) applies to income derived from business carried on on behalf of a religious and charitable institution when the income is applied solely to the purpose of the institution and the business is carried on in the manner provided. It is enough to say that the scheme, considered as a business, was not carried on on behalf of any religious or charitable institution. Once it is held that the assessees made the profits, how they use it would not matter. In the result, we would answer both parts of the question framed, in the affirmative. We hold that the profits were the income which accrued to the assessees and such income is assessable to income-tax and is not exempt from taxation under section 4(3)(i-a). The appeal is allowed
|