Law: Income Tax Act, 1922

Section: 14(2)(c)

Section 14(2)(c) of the Indian Income-tax Act 1922 read with Part B States (Taxation Concessions) Order, 1950 - Foreign income - Remittances - Assessment year 1951-52 - During relevant year, assessee, a resident in taxable territories, denied income from business in Part B States - Out of income included on this account a portion was taken as remittance of income, profit and gains of current year and balance as remittances out of past accumulated profits - Regarding amount taken as remittances during current year, assessee claimed that he was entitled to benefit of Penal 'B' States (Taxation Concessions) Order, 1950 - Whether since amount in question did not form first receipts with section 4(1)(a) of 1922 Act nor did they came under section 4(1)(b)(iii) because they were not from accumulated profits of prior year, its inclusion could only be on basis that it had accrued or arisen to assessee outside taxable territories during previous year - Held, yes - Whether, therefore, this amount would fall within exemption granted under section 14(2)(c) of 1922 Act and assessee would have benefit of Taxation Concessions Act, 1950 - Held, yes FACTS The assessee derived income from his personal business as well as partnership business a merged territory as well as in several Part 'B' states in the assessment of the assessee for the assessment year 1951-52, the Income-tax Officer included a sum of Rs. 26,590 as the assessee's income from business at 'B' and Rs. 75,525 as the income from the business in 'J'. Out of the sum of Rs. 26,590, which was included as the income from 'B', a sum of Rs. 14,319 was taken as remittance of the income, profit and gains of the current year and the balance of Rs. 12,271 as remittances out of the past accumulated profits. Similarly, in respect of the sum of Rs. 75,525 included as income from 'J', a sum of Rs. 28,097 was treated as remittances of the profits of the current year, while the remaining amount of Rs. 47,428 as remittances of past profits. In respect of these items, the assessee claimed that he was entitled to the benefit of the Part "B" States (Taxation Concessions) Order, 1950. The claim, however, was disallowed by the ITO, who…

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