House property income stays taxable as property income, not business profits, when letting and management are incidental to ownership.

Income from ownership, letting and ordinary management of house property was held to fall under the specific head of "property" rather than "business" under the Income-tax Act, 1922. The court treated rent collection and management as incidental steps to enjoy property income, not as business activity, and held that the fact that the owner was a company did not change the character of the receipt. The special scheme for taxing bona fide annual value of owned property prevailed over the general business provision, so the income was chargeable under Section 9 and not Section 10.

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Issues: Whether the income derived by a company from ownership, letting and management of house property was assessable under the head "property" or as business profits under the head "business".

Analysis: Section 6 of the Income-tax Act, 1922 classified income under distinct heads, including "property" and "business". Section 9 laid down a special and detailed scheme for taxing bona fide annual value of property owned by an assessee, including buildings and lands appurtenant thereto, while Section 10 dealt with profits or gains of business. The company's income arose from ownership of buildings and their curtilage, and the acts of letting, rent collection and ordinary management were merely the steps necessary for enjoying property income. The fact that the owner was a company did not alter the character of the receipt, and authorities dealing with excess profits duty or analogous business concepts were not applicable to displace the specific statutory treatment of house property.

Conclusion: The income was chargeable under Section 9 of the Income-tax Act, 1922 and not under Section 10; the answer was against the assessee and in favour of the Revenue.

Ratio Decidendi: Where income arises from ownership of house property, ordinary management and rent collection incidental to such ownership do not convert the receipt into business profits, and the specific head for property prevails over the general head for business.

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