THE COMMISSIONER OF INCOME TAX, PUNJAB vs THE LAHORE ELECTRIC SUPPLY CO.

The Supreme Court addressed the applicability of Section 10(2)(xv) of the Income Tax Act, 1922, concerning the deduction of expenses by a company claiming to carry on business. The Court held that the company had ceased its business operations after the acquisition of its Lahore Electric Supply Undertaking in 1942, and thus was not entitled to the claimed deductions for the assessment years 1948-49 and 1949-50. The Tribunal and High Court's findings were overturned, establishing that mere possession of assets or intentions to invest did not equate to carrying on business.