Law:

Section:

Section 176 of the Income-tax Act, 1961 [Corresponding to section 25 of the Indian Income-tax Act, 1922] - HUF - Assessment after partition - Assessment year 1944-45 - Assessee HUF was carrying on three separate businesses at time of its disruption - Among all these business, tax was paid under Indian Income-tax Act, 1918 only in respect of money lending business - Assessee claimed benefit under section 25(4) of 1922 Act in respect of all businesses - Since three businesses of assessee were distinct businesses, it could not be stated that relief which was intended for Money lending business which was carried on by assessee and which was subjected to tax under Indian Income-tax Act, 1918 should be extended to business of running other businesses which were not in existence and which were not subjected to tax under Indian Income-tax Act, 1918 - Held, yes - Whether thus, assessee was entitled to benefit mentioned in section 25(4) of 1922 Act only in respect of his money-lending business - Held, yes Words and Phrases: Expression 'income, profits and gains' as occurring in section 25(4) of the Indian Income-tax Act, 1922 FACTS The assessee was an undivided Hindu family. Subsequently, it was disrupted. At the time of disruption the joint family was carrying on three separate businesses, one of money-lending, secondly of running a ginning factory and lastly a share business but tax was paid under the Indian Income-tax Act, 1918 only in respect of the money-lending business. The assessee claimed the concessions laid down in section 25(4) of the 1922 Act in respect of all the businesses on the ground that his business had been succeeded to by others and, therefore, he was entitled to the benefits mentioned in that sub-section. The ITO refused to give the benefit of section 25(4) of the 1922 Act. The AAC gave the assessee the relief. On department's appeal, the Tribunal held that the assessee was only entitled to relief under section 25(4) in respect of income from the same business which was taxed under the Act of 1918. On reference: HELD The policy of the Legislature in enacting section 25, sub-sections (3) and (4), of the 1922 Act was to prevent double taxation and…

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