9911796707
TMI Blog1927 (11) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... ered association; but as from April 1, 1925, it was converted into a company by being registered under the Indian Companies Act (VII. of 1913) as a company limited by guarantee, the object of the company being to take over the assets, effects and liabilities of the Western India Turf Club. The question raised in these proceedings is, at what rate that company should pay super-tax for the tax year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the total income of the previous year. Strictly speaking, this company had no total income in the previous year, for it did not then exist; but that difficulty is removed by Section 26 of the same Act, which provides that: " Where any change occurs in the constitution of a firm or where any person has succeeded to any business, profession or vocation, the assessment shall be made on the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other words, for the purpose of ascertaining the rate of the tax you are referred to a statute to be afterwards passed. That statute was afterwards passed, and it is Act XIII. of 1925. It provides by Section 7, Sub-section 2, that: " The rates of super-tax for the year beginning on the 1st day of April, 1925, shall for the purposes of Section 55 of the Indian Income Tax Act, 1922, be those sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e income in the previous year. That is not so. No liability to tax attached to the income of this company until the passing of the Act of 1925, and it was then to be taxed at the rate appropriate to a company. 7. With regard to the Allahabad case which has been cited (In re Begg, Sutherland & Co., Ld. (1925) I.L.R. 47 A. 715), it is sufficient to say that, if the question there decided should aga ..... X X X X Extracts X X X X X X X X Extracts X X X X
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