TMI Blog1947 (3) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... admittedly the business of growing sugar-cane on its farms is agricultural business. The question that arises for our decision is whether agricultural business is a business to which the Excess Profits Tax Act applies, and the question arises because of the following circumstances. Under the Excess Profits Tax Act, the department has got to consider what is the capital of the assessee during the standard period and during the chargeable period. If the capital during the chargeable period has increased, then certain deduction is to be given to the assessee in respect of that increased capital. Now in this case the capital of the assessee during the chargeable period was ₹ 14,00,000 as against the capital during the standard period o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business to which this Act applies. Turning to Section 4 of the Excess Profits Tax Act which is the charging section, that section exempts from charge to excess profits tax all income and all profits which are exempt from income-tax under sub-section (3) of Section 4 of the Indian Income-tax Act. Then we come to Section 5, which is the material section, and that section provides that the Act shall apply to every business of the character described in that section and the qualification is that it must be a business of which any part of the profits made during the chargeable accounting period is chargeable to income-tax by virtue of the provisions of sub-clause (i) or sub-clause (ii) of clause (b) of sub-section (1) or clause (c) of sub-secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Act. Our attention was also drawn to Rule 6 in Schedule II of the Excess Profits Tax Act. That rule provides that where this Act is applicable to part only of a business, the capital employed in that part hall be computed separately from any other capital of the person carrying on the business, and all references to capital employed in a business shall be construed as references to capital employed in that part of the business only. But this rule in terms deals only with the second and third provisos to Section 5 and those two provisos deal with businesses which are within the ambit of the Act but part of which are excluded by reason of those two provisos. But the question we have to determine in this appeal is whether a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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