Business asset income can qualify for section 25(4) relief even when assessed under other income heads.

Relief under section 25(4) of the Indian Income-tax Act, 1922 is not confined to profits and gains assessable under section 10. The provision applies where a person carrying on a business, profession or vocation, earlier taxed under the 1918 Act, is succeeded in that capacity, and the term "business" is not limited by the head under which income is computed. Income arising from business assets retains its business character for this relief even if assessed under other income heads, because the heads of income are only computational modes and do not change the underlying character of the receipt.

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Issues: Whether relief under section 25(4) of the Indian Income-tax Act, 1922 is confined only to profits and gains assessable under section 10, or extends to income derived from business assets though assessable under other heads.

Analysis: Section 25(4) applies where a person carrying on a business, profession or vocation on which tax had at any time been charged under the Indian Income-tax Act, 1918 is succeeded in that capacity by another person. The expression "business" in that provision is not confined to income chargeable under the head "profits and gains of business". The heads of income are only modes of computation and do not alter the character of income as business income when it arises from the exploitation of business assets. Where immovable properties and shares are held as business assets, the income produced by them retains its business character for the purpose of the relief, even if such income is assessable under different heads.

Conclusion: Relief under section 25(4) is not restricted to profits and gains assessable under section 10 and extends to income from business assets assessed under other heads as well.

Ratio Decidendi: For the purpose of section 25(4) of the Indian Income-tax Act, 1922, the word "business" covers income arising from business assets as such, and the statutory relief is not limited by the head under which that income is computed for taxation.

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