Carried On By Him

Carried on by him, the fundamental idea under-lying each of these words i.e. under s. 10 of the Income-tax Act,1922 tax is payable by an assessee 'in respect of the profits or gains of any business, profession or vocation carried on by him.' 'Business' is defined by s. 2, sub-s. (4) as 'including any trade, commerce or manufacture, or any adventure or concern in the nature of trade, commerce or manufacture' is the continuous exercise of an activity and the same central idea is implicit in the words 'carried on by him' occurring in s. 10(1) and those critical words are an essential constituent of that which is to produce the taxable income. Therefore, it is clear that the tax is payable only in respect of the profits or gains of the business which is carried on by the assessee, Liquidators of Pursa Ltd. v. Commissioner of Income Tax, (1954) SCR 767: AIR 1954 SC 253. The phrase 'carried on by him' in s. 10(1) of the Indian Income-tax Act, 1922 connotes the fundamental idea of the continuous exercise of an activity as the essential constituent of that which is to produce the taxable income, E.D. Sassoon and Co. Ltd. v. Commissioner of Income Tax Bombay, (1955) 1 SCR 313: AIR 1954 SC 470 (491).