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TMI Blog1933 (7) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... "the profits of any co-operative society other than the Sanikatta Salt Owners' Society in the Bombay Presidency for the time being registered under the Co-operative Societies Act, 1912 (II of 1912), the Bombay Co-operative Societies Act, 1925 (Bombay Act VII of 1925), or the Burma Co-operative Societies Act, 1927 (Burma Act VI of 1927), or the dividends or other payments received by the members of any such society on account of profits." The Income-tax Officer determined the assessee's total income for the year of assessment 1932-33 to be as follows: I. Income from Securities- Rs. A.P. Rs. A.P. Rs. A.P. Tax Free … 135 0 0 Taxed (gross) ... 278 0 0 413 0 0 II Income from Property- Total Rents ... 6,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mutual co-operative society, upon the ground that "a man cannot make a loss or profit out of himself," per Buckley, L. J., in Carlisle and Silloth Golf Club v. Smith [1913] 3KB 75: see also Gresham Life Assurance Society v. Styles [1892] AC 309, New York Life Assurance Company v. Styles [1889] 14 AC 381, United Service Club, Simla v. Emperor AIR 1921 Lah. 208 and Board of Revenue v. Mylapore. Hindu Permanent Fund AIR 1923 Mad. 684, and in this way to encourage and foster co-operative societies which were brought into being as the result of a movement to improve the conditions under which cultivators of the land in India and Burma lived and worked. Mutual co-operative undertakings have always' been held liable to pay income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en you find legislation following a continuous practice and repeating the very words on which that practice was founded, it may perhaps fairly (be inferred that the legislature in re-enacting the statute intended those words to be understood in their received meaning. And perhaps it might be argued that the inference grows stronger with each successive re-enactment" : Income-tax Commissioners v, Pemsel [1891] AC 531 and Madras Provincial Co-operative Bank, Ltd. v. Commissioner of Income-tax, Madras [1933] ITR 158. It is urged that the assessee society has not previously been assessed upon the income it has received from investments or house property, but in considering what was the intention of the legislature when it issued the notif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sted with capital," and no doubt as income-tax is a tax upon income, in the wide sense of the term, "income" when contrasted with "capital" means and includes not only income in its strict meaning, but also profits and gains. But in my opinion, it is not true to say that in the strict meaning of those terms as appears from an examination of the various sections of the Income-tax Act "income" is used in the same sense as "profits" or "gains." In Section 6 six heads of income, profits and gains are made chargeable to income-tax as therein provided, head (ii) being "interest on securities," (iii) "property," (iv) "business," and under Section 10 income-tax is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended that as the income derived from investments and from property is classed and chargeable under separate heads of income in S. 6 of the Act, it is nihil ad rent that such income may also in the circumstances of any particular case fall within the head "business," for such income, being chargeable as "interest on securities" or as "property" is not to be regarded or treated as "profits," but as "in come" in the strict meaning of those terms, and therefore is out side the ambit of the notification. I am not able to accept this contention. It may be that the investment of capital in property or securities is part of the business of an assessee, and in such a case, in my opinion, the net inc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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