COMMISSIONER OF INCOME-TAX, WESTBENGAL vs CALCUTTA NATIONAL BANK LIMITED(IN LIQUIDATION)

The Supreme Court addressed the liability of a banking company to pay excess profits tax on rental income under the Excess Profits Tax Act, 1940, specifically Section 2(5) and Rule 4(4). The Court held that the income derived from property management was part of the business income, as the company's Memorandum of Association included property management as a business objective. The High Court's decision was reversed, affirming that the rental income must be included in profit calculations under the Act.