https://www.taxtmi.com/caselaws?id=6817 The surplus from the sale of plant and machinery of an ice factory was treated as not chargeable to income-tax as deemed income under section 10(2)(vii) of the Income-tax Act, 1922, because the business was not carried on during the previous year. The statutory fiction created by the second proviso to section 10(2)(vii), as amended in 1949, could not be extended to deem the assessee to have carried on business in the year of sale merely to tax the profit on disposal of the assets. The principle applied was that a deeming provision must remain within its legitimate scope, and the surplus was therefore not taxable. en-us Thu, 15 Sep 1966 00:00:00 +0530 Mon, 02 Feb 2009 12:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6817 The surplus from the sale of plant and machinery of an ice factory was treated as not chargeable to income-tax as deemed income under section 10(2)(vii) of the Income-tax Act, 1922, because the business was not carried on during the previous year. The statutory fiction created by the second proviso to section 10(2)(vii), as amended in 1949, could not be extended to deem the assessee to have carried on business in the year of sale merely to tax the profit on disposal of the assets. The principle applied was that a deeming provision must remain within its legitimate scope, and the surplus was therefore not taxable. Case-Laws Income Tax Thu, 15 Sep 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6817