Income Tax Manual

It is further contended that the history of the assessment to taxation of the income of the Bhikanpur factory throws some light upon the intention of the legislature. [...] He pointed out that the Company really consisted of two distinct entities one interested only in the production of sugar-cane and the other in the manufacture of refined sugar and the accounts show that the factory branch really bought from the agricultural branch the raw sugar-cane at a fixed valuation of 7 annas per maund which was credited to the agricultural branch in the factory accounts an [...] On appeal by them against the assessment it was ruled that the occupation of the farm was the business of husbandry and that the profits of the farm should consequently be excluded for the purpose of excess profits duty under section 39 of the Finance Act 1915 so that what remained as the profits of the factory could alone be assessed. [...] The General Commissioners held that the appellant was exempt from the duty as he was the Chief Contributor to the review and thus carried on the profession of a journalist the profits of which depended mainly on his personal qualifications within the meaning of section 39 (c1 of the Finance Act 1915. [...] The mere issuing of general instructions occasionally by the proprietor in British India and the fact his his being supplied with information from time to time as to the state of the business would not at all bring the case within the purview of the ruling referred to.