COMMISSINER OF EXCESS PROFITS TAX BOMBAY CITY Vs. LAKSHMI SILK MILLS LIMITED
LAWS(SC)-1951-9-2
SUPREME COURT OF INDIA
Decided on September 18,1951

COMMISSIONER OF EXCESS PROFITS TAX,BOMBAY CITY Appellant
VERSUS
LAKSHMI SILK MILLS LIMITED Respondents


Cited Judgements :-

SRI RAM MAHADEO PRASAD VS. COMMISSIONER OF INCOME-TAX [LAWS(ALL)-1960-9-19] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. VIKRAM COTTON MILLS LIMITED [LAWS(ALL)-1973-5-26] [REFERRED TO]
DEEP CHANDRA AND CO VS. COMMISSIONER OF INCOME TAX [LAWS(ALL)-1974-12-18] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. ALLAHABAD MILLING CO PRIVATE LIMITED [LAWS(ALL)-1991-4-107] [REFERRED TO]
COMMISSIONER OF INCOME TAX ANDHRA PRADESH VS. RAMAIAH K RAMAKRISHNA MURTHY [LAWS(APH)-1984-12-49] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. RAMAIAH K RAMAKRISHNA MURTHY K [LAWS(APH)-1984-12-53] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. G V RATTAIAH AND CO [LAWS(APH)-2001-9-44] [REFERRED TO]
NATIONAL CEMENT MINES INDUSTRIES LTD VS. COMMISSIONER OF INCOME TAX WEST BENGAL CALCUTTA [LAWS(CAL)-1955-12-15] [REFERRED TO]
COMMISSIONER OF INCOME-TAX WEST BENGAL VS. BENGAL RIVER SERVICE CO LTD [LAWS(CAL)-1967-5-9] [REFERRED TO]
EVEREST HOTELS LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1973-1-28] [REFERRED TO]
COMMISSIONER OF INCOME TAX CENTRAL VS. EMPIRE JUTE COMPANY LTD [LAWS(CAL)-1973-8-15] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. AJMERA INDUSTRIES PRIVATE LTD [LAWS(CAL)-1974-5-12] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. PREM CHAND JUTE MILLS LTD [LAWS(CAL)-1974-12-20] [REFERRED TO]
JEEWANLAL 1929 LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1981-3-38] [REFERRED TO]
RAJKUMAR OIL MILLS P LTD VS. COMMISSIONER OF INCOME TAX [LAWS(MPH)-1982-2-29] [REFERRED TO]
PREM TRADING CO VS. COMMISSIONER OF INCOME TAX [LAWS(MPH)-1987-1-8] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. CENTRAL STUDIOS P LIMITED [LAWS(MAD)-1972-8-19] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. UNIVERSAL PLAST LTD [LAWS(CAL)-1992-2-1] [REFERRED TO]
COMMISSIONER OF WEALTH TAX VS. SUN JUTE PRESS P LTD [LAWS(CAL)-1993-2-20] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. KOHINOOR TOBACCO PRODUCTS PVT LTD [LAWS(MPH)-2005-2-17] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. MALABAR AND PIONEER HOSIERY PRIVATE LIMITED [LAWS(KER)-1996-2-5] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. NEW INDIA MARITIME AGENCIES P LIMITED [LAWS(MAD)-2001-9-69] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. MOHIDDIN HOTELS PVT LTD [LAWS(BOM)-2005-9-148] [REFERRED TO]
HINDU COTTON PRESS COMPANY LTD VS. COMMISSIONER OF INCOME-TAX [LAWS(P&H)-1986-1-6] [REFERRED TO]
RAY TALKIES VS. COMMISSIONER OF INCOME TAX [LAWS(PAT)-1973-8-13] [REFERRED TO]
ADDITIONAL COMMISSIONER OF INCOME TAX VS. PODDAR AUTO DEALERS [LAWS(PAT)-1974-8-4] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. SAHANA S K AND SONS LIMITED [LAWS(PAT)-1974-9-18] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. SELECTED JHARIA COLLIERY COMPANY PRIVATE LIMITED [LAWS(PAT)-1980-4-15] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. KUYA AND KHAS KUYA COLLIERY COMPANY [LAWS(PAT)-1985-5-14] [REFERRED TO]
COMMISSIONER OF INCOME TAX U P VS. MAHESHWARI DEVI JUTE MILLS LTD [LAWS(SC)-1965-4-18] [REFERRED]
NARAIN SWADESHI WEAVING MILLS VS. COMMR OF EXCESS PROFITS TAX [LAWS(SC)-1954-10-7] [DISTINGUISHED]
NEW SAVAN SUGAR AND GUR REFINING CO LIMITED VS. COMMISSIONER OF INCOME TAX CALCUTTA [LAWS(SC)-1969-2-52] [DISTINGUISHED]
COMMISSIONER OF INCOME TAX LUCKNOW VS. VIKRAM COTTON MILLS LIMITED [LAWS(SC)-1987-12-54] [RELIED ON]
ADDITIONAL COMMISSIONER OF INCOME TAX VS. PUNJAB NATIONAL BANK [LAWS(DLH)-1983-1-26] [REFERRED TO]
SETH BANARSI DAS GUPTA VS. COMMISSIONER OF INCOME TAX [LAWS(ALL)-1972-5-28] [REFERRED TO]
CALCUTTA NATIONAL BANK LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1953-6-17] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. SETHIA TEA ESTATES P LTD [LAWS(CAL)-1990-7-5] [REFERRED TO]
UNIVERSAL PLAST LTD VS. COMMISSIONER OF INCOME TAX [LAWS(CAL)-1993-4-8] [REFERRED TO]
DAMODAR MANGALJI AND CO PVT LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(BOM)-1993-9-73] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. H D AGARWALA AND SONS [LAWS(PAT)-1987-5-25] [REFERRED TO]
ECLAT CONSTRUCTION PRIVATE LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(PAT)-1988-4-48] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. RAMDAS AND SONS [LAWS(PAT)-1996-5-34] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. RAMDAS AND SONS [LAWS(PAT)-1998-7-83] [REFERRED TO]
RAJENDRA KUMAR DWIVEDI VS. COMMISSIONER OF INCOME TAX KANPUR [LAWS(ALL)-2012-8-47] [REFERRED TO]
SCIENTIFIC INSTRUMENT CO. LTD VS. COMMISSIONER OF INCOME TAX [LAWS(ALL)-2011-8-218] [REFERRED TO]
MANGLA HOMES (P) LTD VS. ITO [LAWS(BOM)-2008-8-261] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. MYSORE WINE PRODUCTS LTD. [LAWS(KAR)-2014-7-121] [REFERRED TO]
NIRMALA SAHU VS. CIT [LAWS(ALL)-2013-12-218] [REFERRED TO]
ALWAYS NEW VS. THE INCOME TAX OFFICER [LAWS(KAR)-2014-7-180] [REFERRED TO]
COMMISSIONER OF INCOME TAX VS. FIRST LEASING CO OF INDIA LIMITED [LAWS(MAD)-1996-9-124] [REFERRED]
BATRA PALACE P LIMITED VS. COMMISSIONER OF INCOME TAX [LAWS(P&H)-2016-3-455] [REFERRED TO]
MEERAJ ESTATE AND DEVELOPERS VS. COMMMISSIONER OF INCOME TAX [LAWS(ALL)-2019-9-411] [REFERRED TO]
PTL ENTERPRISES VS. DEPUTY COMMISSIONER OF INCOME TAX [LAWS(KER)-2021-7-155] [REFERRED TO]


JUDGEMENT

- (1.)The sole controversy in this appeal centres round the point as to whether or not excess profits tax is payable on the sum of Rs. 20,005 received by the respondent from Messrs Parakh and Co. by way of rent for the dyeing plant let out to them during the chargeable accounting period.
(2.)The respondent (Sri Lakshmi Silk Mills Ltd. is a manufacturer of silk cloth, and as a part of its business it installed a plant for dyeing silk yarn. During the chargeable accounting period (1-1-1943 to 31-12-1943) owing to difficulty in obtaining silk yarn on account of the war it could make no use of this plant and it remained idle for some time. On 20-8-1943 it was let out to Messrs E. Parakh and Co. on a rent of Rs. 4,001 per month. The Excess Profits Tax Officer by his assessment order dated 11-6-1945 included the sum of Rs. 20,005 realized as rent for five months, in the profits of the business of the respondent and held that excess profits tax was payable on this amount. This order was confirmed on appeal by the Appellate Assistant Commissioner and on further appeal by the Income-tax Tribunal. The Tribunal, however, on being asked referred the following question of law to the High Court for its opinion :
"Whether in the circumstances of the case, the assessee's income of Rs. 20,005 is profits from business within the meaning of S. 2 (5), Excess Profits Tax Act and therefore or otherwise liable to pay excess profits tax -

(3.)The High Court answered the question in the negative. This is an appeal by special leave from this decision.
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