Ordinary meaning of "holding of investments" under tax law extends to house property income, the Supreme Court held.

An undefined fiscal expression must be construed in its ordinary popular sense in the statutory context, rather than by importing a restricted technical meaning from other legislation. On that approach, "a company whose business consists wholly or mainly in holding of investments" under section 23A of the Indian Income-tax Act, 1922, is wide enough to include a company whose principal income is derived from house property leased to tenants. The Court held that the context of section 23A, together with its legislative history and later developments, supported this broader construction. The assessee-company was therefore correctly treated as one falling within the provision, and the appeals failed.

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Issues: Whether a company whose principal income is derived from house property leased to tenants falls within the expression "a company whose business consists wholly or mainly in holding of investments" under section 23A of the Indian Income-tax Act, 1922.

Analysis: The expression "investment" was not defined in the Act, and there was no basis for importing the restricted technical meaning attached to "investment companies" under the Companies Act. The context of section 23A and Explanation 2(i) showed that the legislature intended a wider field than companies dealing only in shares, debentures, stocks, or other securities. The proper approach was to construe the expression in its ordinary popular sense as understood in business parlance, and on that construction income from house property could also be treated as investment income. The legislative history of the provision and later statutory developments also supported this wider meaning.

Conclusion: The assessee-company was rightly held to be a company whose business consisted wholly or mainly in holding of investments.

Final Conclusion: The appeals failed and the Revenue's view on the reference was sustained.

Ratio Decidendi: Where a fiscal expression is undefined and not shown to be a term of art, it must be construed in its ordinary popular sense in the statutory context, and "holding of investments" under section 23A is wide enough to include a company deriving its principal income from house property.

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