Supreme Court of India · 1961-12-20
THE WAR PROFITS TAX COMMISSIONER vs M/s. BINODIRAM BALCHAND
- Citation / case number
- SC 1960/152
- Court
- Supreme Court of India
- Petitioner
- THE WAR PROFITS TAX COMMISSIONER
- Respondent
- M/s. BINODIRAM BALCHAND
- Bench
- GAJENDRAGADKAR, P.B.,SARKAR, A.K.,WANCHOO, K.N.,GUPTA, K.C. DAS,AYYANGAR, N. RAJAGOPALA
Judgment text excerpt
The Supreme Court held that Schedule I of the Gwalior War Profits Tax Ordinance is integral to the ordinance itself and not subordinate legislation under Section 50. The Court interpreted Rule 3(1) to mean that the term 'connection' encompasses indirect connections, affirming that the respondent's majority shareholding allowed control over the company, thus linking the dividend income to its business. Consequently, the dividend was deemed taxable as business profits under the ordinance.