https://www.taxtmi.com/caselaws?id=185351 The Madras HC considered whether rent from portions of a company's buildings, and the corresponding building cost, formed part of its business under the Excess Profits Tax Act. Applying the definition of "business" in section 2(5), its provisos, rule 4(4) of Schedule I, and the company's memorandum of association, the Court noted that the company was authorised to acquire and deal with property only for its own business purposes, not to carry on a business of constructing buildings for letting. As the buildings were erected for the company's own use and the letting was not within its constitutional objects, the rental receipts were excluded from profits and the related cost was excluded from capital employed. en-us Fri, 30 Mar 1951 00:00:00 +0530 Wed, 10 Aug 2016 12:23:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=185351 The Madras HC considered whether rent from portions of a company's buildings, and the corresponding building cost, formed part of its business under the Excess Profits Tax Act. Applying the definition of "business" in section 2(5), its provisos, rule 4(4) of Schedule I, and the company's memorandum of association, the Court noted that the company was authorised to acquire and deal with property only for its own business purposes, not to carry on a business of constructing buildings for letting. As the buildings were erected for the company's own use and the letting was not within its constitutional objects, the rental receipts were excluded from profits and the related cost was excluded from capital employed. Case-Laws Income Tax Fri, 30 Mar 1951 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=185351