COMMISSIONER OF INCOME-TAX BOMBAY vs CHUGANDAS AND CO., BOMBAY

The Supreme Court ruled that under Section 25(3) of the Indian Income-tax Act (XI of 1922), a taxpayer is entitled to exemption from income tax if the income was previously charged under a prior act, specifically the Indian Income-tax Act (VII of 1918). The Court held that the exemption applies to all income earned from the business, not just to profits and gains under Section 10. The appeal by the Commissioner of Income-tax was dismissed, affirming the High Court's decision that the firm was entitled to the exemption.