AIR 1960 SUPREME COURT 1175 ::1960 3 SCR 727 ::1960 SCJ 1289 ::1963 Bom LR 534 ::1960 40 ITR 106

Supreme Court Of India

(From Bombay : (1956) 30 ITR 849)

Hon'ble Judge(s): S. K. Das, J. L. Kapur, M. Hidayatullah , JJJ

(A) Business Profits Tax Act (21 of 1947) , S.5 Proviso 3— Scope - Loss in business in part of India to which Act does not apply - Profits in business in taxable territories - Loss can be set off against profits. Under the Act the unit of taxation is the business, that is, any business to which the Act applies and if a person carries on more than one business to all of which the Act applies, all the business carried on by the same person shall be treated as one business for the purposes of the Act. The third proviso to S. 5 does not exclude from the purview of the Act the business itself carried on in any part of India to which the Act does not extend by exempts only the income, profits or gains of that business unless they are received in or brought into the taxable territories. The business is still one to which the Act applies under the substantive part of S. 5. Hence the losses of such business can be set off against the profits of the business in the taxable territories. AIR 1953 Bom 43, Rel. on; AIR 1928 Mad 487 and AIR 1932 Bom 94. Dist.(Para 5 14) (B) Interpretation of Statutes , — Taxing Statutes - Ambiguity in language. If there is any ambiguity of language of a provision the benefit of that ambig....