Stallion service fees on a stud farm are profits of land occupation, not separate business income.

Fees received for stallion services provided on a stud farm to mares brought by outside owners were treated as profits arising from the occupation of the land itself, not as income from a separate and distinct trade. Because the stallions were maintained and used on the occupied land as part of the same breeding operation, the receipts were held inseparable from the stud farm occupation and fell within Schedule B rather than being separately taxable under Schedule D. Earlier authorities were distinguished or confined, and the outside-stallion services were not treated as a separate business concern.

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Issues: Whether fees received for the services of stallions to mares brought by outside owners to a stud farm were taxable under Schedule D or were profits arising from the occupation of land already covered by Schedule B.

Analysis: The receipts were held to be inseparable from the occupation of the stud farm. The land was occupied for the purpose of a thoroughbred stud farm, and the stallions were maintained and used on that land as part of the same breeding operation as the appellant's own mares. The service fees were treated as part of the profits arising from the occupation of the land, not as the product of a separate and distinct trade or concern outside that occupation. The earlier authorities were distinguished or confined to their special facts, and the case treating outside stallion services as separate business income was not followed.

Conclusion: The fees were covered by Schedule B and were not separately taxable under Schedule D; the assessment under Schedule D failed in favour of the assessee.

Ratio Decidendi: Where land is occupied as a stud farm, fees for stallion services rendered on that land to visiting mares are profits of the occupation of the land itself and cannot be carved out for separate taxation unless they arise from a genuinely distinct and severable business.

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