COMMISSIONER OF INCOME-TAX, PUNJAB, PATIALA vs R. B. JODHA MAL KUTHIALA

The Supreme Court held that the Indian Income-tax (Amendment) Act 7 of 1939 came into force on April 1, 1939, and determined that the assessee was carrying on business at that time, thus entitled to benefits under Section 25(4) of the Indian Income-tax Act, 1922. The Court found that the new firm commenced operations immediately after the dissolution of the previous firm on March 31, 1939, and the continuity of the timber business was maintained. The High Court's decision to grant the benefit was upheld.