GENERAL FAMILY PENSION FUND vs THE COMMISSIONER OF INCOME-TAX,WEST BENGAL.

The Supreme Court ruled that under Section 10(7) of the Indian Income-tax Act, 1922, the profits of life insurance businesses must be computed separately under Rule 2(a) and Rule 2(b) of the rules published in 1939, with income-tax levied on the greater amount. The Court clarified that the mere statement of the Departmental Representative does not constitute a finding of fact by the Tribunal. The business of granting terminable pensions or annuities is classified as life insurance under Section 2(11) of the Insurance Act, 1938. The appeal was decided in favor of the appellant, affirming the need for separate computations for tax purposes.