M/S. E. D. Sasoon & Co. Ltd. Bombay v. the C.I.T. Bombay City
Case brief
What is this about?
E.D. Sassoon & Co. Ltd. v. CIT Bombay City and vice versa, Supreme Court of India, Civil Appeals Nos. 26 and 162 of 1969, decided 29-08-1972 (K.S. Hegde, P. Jaganmohan Reddy, H.R. Khanna, JJ.; judgment by P. Jaganmohan Reddy, J.). Section 25(3), Indian Income-tax Act 1922 — conditions for exemption on discontinuance of a business earlier charged under the Indian Income-tax Act 1918; relief attaches to the 'business', not the 'assessee', so a successor taking over the firm's business as a going concern (including dealings in shares and stocks) qualifies; exemption not confined to any head of income; Commissioner of Income-tax, Bombay City v. Chugandas & Co. (55 ITR 22) applied. Assessee's claim of Rs. 33,40,057 exemption for AY 1949-50 upheld; both appeals dismissed with costs; assessee did not press C.A. 26/69 on the Shanghai property loss question.
What did the court decide?
None; both appeals dismissed with costs. Civil Appeal No. 26 of 1969 (assessee, on the second question) was not pressed, and the Revenue's appeal (C.A. No. 162 of 1969) failed, the Court confirming the High Court judgment that the assessee company was entitled to relief under s.25(3).