https://www.taxtmi.com/caselaws?id=289357 Section 5 excluded from excess profits tax any business whose whole profits accrued or arose in an Indian State, so profits wholly earned there were outside charge. Section 10A, which targeted arrangements to avoid or reduce tax liability, could not apply where no liability existed in the first place on those State profits. The taxpayer was entitled to arrange its business to benefit from the statutory exemption, and the motive for opening the business in the Indian State was irrelevant. The addition of those profits to taxable income was therefore beyond jurisdiction. en-us Thu, 24 Mar 1949 00:00:00 +0530 Mon, 27 Jul 2020 16:57:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289357 Section 5 excluded from excess profits tax any business whose whole profits accrued or arose in an Indian State, so profits wholly earned there were outside charge. Section 10A, which targeted arrangements to avoid or reduce tax liability, could not apply where no liability existed in the first place on those State profits. The taxpayer was entitled to arrange its business to benefit from the statutory exemption, and the motive for opening the business in the Indian State was irrelevant. The addition of those profits to taxable income was therefore beyond jurisdiction. Case-Laws Income Tax Thu, 24 Mar 1949 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289357