Report No. 12
13. Business assessed under the Income-tax Act, 1918.-
(1) Where any business, profession or vocation on which income-tax was at any time charged under the provisions of the Indian Income tax Act, 1918 (7 of 1918), is discontinued, then, unless the provisions of sub-section (2) have been rendered applicable by virtue of there having been a succession, the income, of the period from the date of commencement of the previous year in which the business was discontinued to the date of discontinuance, shall not be included in the total income of the person who was carrying on the business, profession or vocation.
[Section 25(3), part]
(2) Where the person who was on the 1st day of April, 1939, carrying on any business, profession or vocation on which income-tax was at any time charged under the provisions of the Indian Income-tax Act, 1918 (7 of 1918), is succeeded in such capacity by another person, the change not merely being a change in the constitution of a firm, the income of such business, profession or vocation of the period from the date of commencement of the previous year in which the succession took place to the date of succession shall not be included in the total income of the first mentioned person.
[Section 25(4), part]
(3) The provisions of sub-sections (1) and (2) shall not apply to a business, profession or vocation on which income-tax was at any time charged in the hands of a company under the Indian Income-tax Act, 1886 (2 of 1886), or on which income-tax would have been charged in the hands of a company for. the assessment year ending on the 31st day of March, 1918, if the company, having been in existence in that year, had also been in existence in the year ending on the 31st day of March, 1917.
[Section 25(4), Proviso (b)]
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