Report No. 12
K-Discontinuance of business, or dissolution.
185. Discontinued business.-
(1) Notwithstanding anything contained in section 3, [section 3] where any business, profession or vocation which was not charged under the provisions of the Indian Income-tax Act, 1918, (7 of 1918) is discontinued in any assessment year, the total income of such business, profession or vocation of the period from the expiry of the previous year for that assessment year upto the date of such discontinuance may, at the discretion of the Income-tax Officer, be charged to tax in that assessment year.
[Section 25(1), part]
(2) The total income of each completed previous year or part thereof included in such period shall be chargeable to tax at the rate or rates in force in that assessment year, and separate assessments shall be made in respect of each such completed previous year or part thereof
(3) Any person discontinuing any such business, profession or vocation shall give to the Income-tax Officer notice of such discontinuance within fifteen days thereof.
[Section 25(2), earlier part]
(4) Tax chargeable under this section shall be in addition to the tax, if any, chargeable under any other provision of this Act.
[Section 25(1), part]