Can the business or profession be carried on at any time during the previous year ?

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  1. Nikil Mohan

    Nikil Mohan Member

    As per Income tax Act, can the business or profession be carried on at any time during the previous year, if so please explain the legal provisions.
     
  2. Chandrashekar M

    Chandrashekar M Active Member

    The Hon'ble Supreme court has held in the case of Bombay steam Navigation co pvt ltd vs. CIT 56 ITR 52 that The Emphasis of the provision is that the business or profession must have been carried on at any time during the previous year. It follows therefore, that in order to bring to charge the profits and gains of business or profession, it is not necessary that the business must have been carried on throughout the previous year. Indeed, it would be a fallacious proposition.
     
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