Transitional tax relief under section 25(4) requires prior charge on the business itself, not merely received profits.

Relief under section 25(4) of the Indian Income-tax Act, 1922 was unavailable unless tax had earlier been charged on the business itself under the Indian Income-tax Act, 1918. An assessment confined to the receipt in British India of profits from a foreign business did not amount to a charge on that business as such. The court rejected the suggested reading of "on which" as "with reference to which", treating it as an impermissible rewriting of the statute. The reference was answered against the assessee, and the transitional relief claim failed.

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Issues: Whether relief under section 25(4) of the Indian Income-tax Act, 1922 was available where the prior assessment under the Indian Income-tax Act, 1918 was only on the receipt in British India of the assessee's share of profits from a foreign business and not on the business as such.

Analysis: Relief under section 25(4) was available only if tax had at some time been charged on the business itself under the Indian Income-tax Act, 1918. The earlier Act taxed the assessee only on income received in British India, and a foreign business could not itself be assessed under that Act. The fact that the profits received from that business were assessed did not make the tax one charged on the business as such. The argument that the words "on which" should be read as "with reference to which" was rejected as impermissible rewriting of the statute.

Conclusion: The assessee was not entitled to relief under section 25(4); the reference was answered against the assessee and in favour of the Commissioner.

Final Conclusion: The statutory condition for transitional relief was not satisfied because the earlier charge was on received profits and not on the foreign business itself, so the assessee failed to establish entitlement to the benefit claimed.

Ratio Decidendi: For relief under section 25(4), the earlier tax must have been charged on the business itself under the predecessor Act, and an assessment only on the receipt of profits from that business does not satisfy that condition.

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