Whether the ownership of business is essential as per income tax Act ?

Income tax act says “Person carrying on the business” , in that case, is ownership of business essential ?

As per section 28 of Income tax Act, it is the person who carries on the business who is liable to tax. As per Hon’ble Bombay High court decision in Saifuddin Alimohammed vs CIT (1954) 25 ITR 237(Bom) & Balwantrai Jethalal vaidya (1958) 34 ITR 187 (Bom) what is emphasised is not the ownership of the business, but the fact of the business being carried on by the assessee. Accordingly as per Hon/ble Madras high court decision in CIT vs.United India Life Insurance co ltd (1966) 62 ITR 610-614 (Mad) it will be sufficient if the assessee carried on the business in the previous year under some title, though not a beneficial character, as emphasised in Honble supreme court in the case of Executors of the Estate of J.K.Dubash vs. CIT (1951) 19 ITR 182 (SC)

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