Report No. 12

62. Profits chargeable to tax.-

The provisions of section 41(1) [Section 10(2A)] shall apply, so far as may be, in computing the income of an assessee under section 58 [main section regarding chargeability of Income from other sources], as they apply in computing the income of an assessee under the head "Profits and gains of business, profession or vocation".

[Section 12(5), part.]

(2) When any buildings, machinery, plant or furniture to which section 58(2), clauses (ii) and (iii) [sub-sections regarding income from hire of machinery etc. and lease of building, inseparable from machinery, in the section regarding chargeability] apply are sold, discarded, demolished or destroyed, the provisions of section 41(2) [Section 10(2)(vii), 2nd and 4th provisos, so far as they deal with profits] shall apply, so far as may be, in computing the income of an assessee under section 58 [Section regarding chargeability of income from other sources] as they apply in computing the income of an assessee under the head "Profits and gains of business, profession or vocation".

[Section 12(3) and (4), part for profits]