Law: Income Tax Act, 1922

Section: 4,4(3)(i),

(a) Income tax Act (XI of 1922)--S. 4(3)(i), provisos (i) m (ii), Proviso Function Total income -Exemption Business carried on in course of carrying out for a religious or charitable purpose Trust property consisted of five motor launches and one insurance policy for certain amount Income derived from business of plying launches for hire was applied wholly for charitable and religious purposes and said business was carried on by trustee himself who had no business of his own Assessee claiming exemption from levy of tax under S. 4(3)(i) of Act Department rejecting claim on ground that in view of proviso to S. 4(3)(1) exemption was not available as business was not carried on in course of carrying out of religious purpose Held, proviso to statute was always intended to a bridge, restrict or negative benefit given under statute for certain purposes Under S. 4(3)(i), proviso was clearly intended to govern, qualify and detract from exemption provided in main subsection (1) One of conditions for getting exemption was that business was carried on in course of carrying out of purpose of trust Income derived from plying motor launches, therefore, was not derived from such business, such business being not carried for purpose of carrying out of purpose of trust. P L D 1963 SC 209 rel (1964) 53 1 T R 167; (1962) 44 1 T R 828; 1944 1 T R 385 and 8 P T D 100 ref. (b) Income tax Act (XI of 1922) S. 4(3)(i), proviso Business Meaning Word 'property' used in main provisions of cl. (i) of S. 4(3) of Act and word "business" used in proviso Held, "business" was "property" Property, _held, under trust included a business undertaking so held. 7 I T R 415 rel. (c) Res judicata Principle of Practice Supreme Court Point already decided by Pakistan Supreme Court reagitated before Supreme Court of Bangla Desh in a subsequent case Practice` not countenanced with favour. JUDGMENT SHAHABUDDIN AHMAD, J. These six appeals by the Commissioner of Income tax have been brqug4t before us by a Certificate granted by the High Court Division and raise the question whether the High Court Division allowed the respondent exemption of income tax on correct interpretation of section 4(3)(i) of the Income…

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