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- Interpretation of Section 25(3) of the Income-tax Act - Applicability of Section 25(3) to income from property - Consideration of discontinuance of income source Analysis: The case involved a Hindu undivided family that became divided, leading to an assessment of income from property. The Income-tax Officer confirmed the partition and rejected an application for relief under Section 25(3) of the Income-tax Act. The issue before the court was whether the family was entitled to benefits under Section 25(3). The section provides relief when a business, profession, or vocation is discontinued. The authorities and the Tribunal held that Section 25(3) did not apply because it pertains to income from business, profession, or vocation, not property income. They also noted that there was no discontinuance of income source. The court agreed with this interpretation, emphasizing the clear language of the statute. They highlighted the distinction between income from property and business income under Sections 9 and 10 of the Income-tax Act. The court concluded that the relief under Section 25(3) is meant for business income, not property income, and thus, it does not apply in this case. The court rejected the argument that it would be anomalous not to grant relief under Section 25(3) for property income when it is granted for business income. They emphasized that statutory interpretation should focus on the plain language of the statute. They pointed out that the Income-tax Act categorizes income under different heads, with property income and business income treated separately. Therefore, the court found no need to consider whether there was a discontinuance of income source in this case. Ultimately, the court held that the family was not entitled to benefits under Section 25(3) due to the nature of their income being from property, not business, profession, or vocation. The Commissioner of Income-tax was awarded costs, and the reference was answered in the negative.
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