Section 11 not to apply in certain cases 2.
Nothing contained in section 11 or section 12 shall operate so as to exclude from the total income of the previous year of the person in receipt thereof- a any part of the income from the property held under a trust for private religious purposes which does not enure for the benefit of the public b in the case of a trust- for charitable purposes or a charitable institution created or established after the commencement of this Act, any income thereof if the trust or institution is created or established for the benefit of any particular religious community or caste c in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof- i if such trust or institution has been created or established after the commencement of this Act and under the terms of the trust or the rules governing the institution, any part of such income enures, or ii if any part of such income or any property of the trust or the institution whenever created or established is during the previous year used or applied, directly or indirectly for the benefit of any person referred to in sub- section 3 Provided that in the case of a trust or institution created or established before the commencement of this Act, the provisions of sub- clause ii shall not apply to any use or application, whether directly or indirectly, of any part of such income or any property of the trust or institution for the benefit of any person refer- red to in sub- section 3 , if such use or application is by way of compliance with a mandatory term of the trust or a mandatory rule governing the institution Provided further that in the case of a trust for religious purposes or a religious institution whenever created or established or a trust for charitable purposes or a charitable institution created or established before the commencement of 1. Reintroduced by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. Earlier, it was omitted by the Direct Tax Laws Amendment Act, 1987, with effect from the same date. Section 13 was amended by the Finance Act, 1963, w. r. e. f. 1- 4- 1962 Finance Act, 1966, w. e. f. 1- 4- 1966 and substituted by the Finance Act, 1970, w. e. f. 1- 4- 1971 3. Inserted by the Finance Act, 1972, w. e. f. 1- 4- 1973. 4. Omitted by the Finance Act, 1983, w. e. f. 1- 4- 1984. Prior to the omission, clause bb , as inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1977, read as under bb in the case of a charitable trust or institution for the relief of the poor, education or medical relief, which carries on any business, any income derived from such business, unless the business is carried on in the course of the actual carrying out of a primary purpose of the trust or institution this Act, the provisions of sub- clause ii shall not apply to any use or application, whether directly or indirectly, of any part of such income or any property of the trust or institution for the benefit of any person referred to in sub- section 3 in so far as such use or application relates to any period before the 1st day of June, 1970 d in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof, if for any period during the previous year- i any funds of the trust or institution are invested or deposited after the 28th day of February, 1983 otherwise than in any one or more of the forms or modes specified in sub- section 5 of section 11 or ii any funds of the trust or institution invested or deposited before the 1st day of March, 1983 otherwise than in any one or more of the forms or modes specified in sub- section 5 of section 11 continue to remain so invested or deposited after the 30th day of November, 1983 or iii any shares in a company not being a Government company as defined in section 617 of the Companies Act, 19563 1 of 1956 , or a corporation established by or under a Central,. State or Provincial Act are held by the trust or institution after the 30th day of November, 1983 Provided that nothing in this clause shall apply in relation to- i any assets held by the trust or institution where such assets form part of the corpus of the trust or institution as on the 1st day of June, 1973 ia any accretion to the shares, forming part of the corpus mentioned in clause i , by way of bonus shares allotted to the trust or institution ii any assets being debentures issued by, or on behalf of, any company or corporation acquired by the trust or institution before the 1st day of March, 1983 iia any asset, not being an investment or deposit in any of the forms or modes specified in sub- section 5 of section 11, where such asset is not held by the trust or institution, 1. Substituted by the Finance Act, 1983, w. e. f. 1- 4- 1983. The original clause d was inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1977 and was amended by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978 and the Finance Act, 1982, w. e. f. 1- 4- 1982. 4. The words and such assets were not purchased by the trust or institution or acquired by it by conversion of, or in exchange for, any other asset omitted by the Finance Act, 1992, w. r. e. f. 1- 4- 1983. 5. Inserted by the Finance Act, 1992, w. r. e. f. 1- 4- 1983. 6. Inserted by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1983. otherwise than in any of the forms or modes specified in sub- section 5 of section 11, after the expiry of one year from the end of the previous year in which such asset is acquired or the 31st day of March, 1993 whichever is later iii any funds representing the profits and gains of business, being profits and gains of any previous year relevant to the assessment year commencing on the 1st day of April, 1984 or any subsequent assessment year. Explanation.- Where the trust or institution has any other income in addition to profits and gains of business, the provisions of clause iii of this proviso shall not apply unless the trust or institution maintains separate books of account in respect of such business. Explanation.- For the purposes of sub- clause ii of clause c , in determining whether any part of the income or any property of any trust or institution is during the previous year used or applied, directly or indirectly, for the benefit of any person referred to in sub- section 3 , in so far as such use or application relates to any period before the 1st day of July, 1972 , no regard shall be had to the amendments made to this section by section 7 other than sub- clause ii of clause a thereof of the Finance Act, 1972 .
a any part of the income from the property held under a trust for private religious purposes which does not enure for the benefit of the public
b in the case of a trust- for charitable purposes or a charitable institution created or established after the commencement of this Act, any income thereof if the trust or institution is created or established for the benefit of any particular religious community or caste
c in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof- i if such trust or institution has been created or established after the commencement of this Act and under the terms of the trust or the rules governing the institution, any part of such income enures, or ii if any part of such income or any property of the trust or the institution whenever created or established is during the previous year used or applied, directly or indirectly for the benefit of any person referred to in sub- section 3 Provided that in the case of a trust or institution created or established before the commencement of this Act, the provisions of sub- clause ii shall not apply to any use or application, whether directly or indirectly, of any part of such income or any property of the trust or institution for the benefit of any person refer- red to in sub- section 3 , if such use or application is by way of compliance with a mandatory term of the trust or a mandatory rule governing the institution Provided further that in the case of a trust for religious purposes or a religious institution whenever created or established or a trust for charitable purposes or a charitable institution created or established before the commencement of 1. Reintroduced by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. Earlier, it was omitted by the Direct Tax Laws Amendment Act, 1987, with effect from the same date. Section 13 was amended by the Finance Act, 1963, w. r. e. f. 1- 4- 1962 Finance Act, 1966, w. e. f. 1- 4- 1966 and substituted by the Finance Act, 1970, w. e. f. 1- 4- 1971 3. Inserted by the Finance Act, 1972, w. e. f. 1- 4- 1973. 4. Omitted by the Finance Act, 1983, w. e. f. 1- 4- 1984. Prior to the omission, clause bb , as inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1977, read as under bb in the case of a charitable trust or institution for the relief of the poor, education or medical relief, which carries on any business, any income derived from such business, unless the business is carried on in the course of the actual carrying out of a primary purpose of the trust or institution this Act, the provisions of sub- clause ii shall not apply to any use or application, whether directly or indirectly, of any part of such income or any property of the trust or institution for the benefit of any person referred to in sub- section 3 in so far as such use or application relates to any period before the 1st day of June, 1970
if such trust or institution has been created or established after the commencement of this Act and under the terms of the trust or the rules governing the institution, any part of such income enures, or
if any part of such income or any property of the trust or the institution whenever created or established is during the previous year used or applied, directly or indirectly for the benefit of any person referred to in sub- section 3 Provided that in the case of a trust or institution created or established before the commencement of this Act, the provisions of sub- clause ii shall not apply to any use or application, whether directly or indirectly, of any part of such income or any property of the trust or institution for the benefit of any person refer- red to in sub- section 3 , if such use or application is by way of compliance with a mandatory term of the trust or a mandatory rule governing the institution Provided further that in the case of a trust for religious purposes or a religious institution whenever created or established or a trust for charitable purposes or a charitable institution created or established before the commencement of 1. Reintroduced by the Direct Tax Laws Amendment Act, 1989, w. e. f. 1- 4- 1989. Earlier, it was omitted by the Direct Tax Laws Amendment Act, 1987, with effect from the same date. Section 13 was amended by the Finance Act, 1963, w. r. e. f. 1- 4- 1962 Finance Act, 1966, w. e. f. 1- 4- 1966 and substituted by the Finance Act, 1970, w. e. f. 1- 4- 1971 3. Inserted by the Finance Act, 1972, w. e. f. 1- 4- 1973. 4. Omitted by the Finance Act, 1983, w. e. f. 1- 4- 1984. Prior to the omission, clause bb , as inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1977, read as under bb in the case of a charitable trust or institution for the relief of the poor, education or medical relief, which carries on any business, any income derived from such business, unless the business is carried on in the course of the actual carrying out of a primary purpose of the trust or institution this Act, the provisions of sub- clause ii shall not apply to any use or application, whether directly or indirectly, of any part of such income or any property of the trust or institution for the benefit of any person referred to in sub- section 3 in so far as such use or application relates to any period before the 1st day of June, 1970
Substituted by the Finance Act, 1972, w. e. f. 1- 4- 1973.
d in the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof, if for any period during the previous year- i any funds of the trust or institution are invested or deposited after the 28th day of February, 1983 otherwise than in any one or more of the forms or modes specified in sub- section 5 of section 11 or ii any funds of the trust or institution invested or deposited before the 1st day of March, 1983 otherwise than in any one or more of the forms or modes specified in sub- section 5 of section 11 continue to remain so invested or deposited after the 30th day of November, 1983 or iii any shares in a company not being a Government company as defined in section 617 of the Companies Act, 19563 1 of 1956 , or a corporation established by or under a Central,. State or Provincial Act are held by the trust or institution after the 30th day of November, 1983 Provided that nothing in this clause shall apply in relation to- i any assets held by the trust or institution where such assets form part of the corpus of the trust or institution as on the 1st day of June, 1973
any funds of the trust or institution are invested or deposited after the 28th day of February, 1983 otherwise than in any one or more of the forms or modes specified in sub- section 5 of section 11 or
any funds of the trust or institution invested or deposited before the 1st day of March, 1983 otherwise than in any one or more of the forms or modes specified in sub- section 5 of section 11 continue to remain so invested or deposited after the 30th day of November, 1983 or
any shares in a company not being a Government company as defined in section 617 of the Companies Act, 19563 1 of 1956 , or a corporation established by or under a Central,. State or Provincial Act are held by the trust or institution after the 30th day of November, 1983 Provided that nothing in this clause shall apply in relation to-
any assets held by the trust or institution where such assets form part of the corpus of the trust or institution as on the 1st day of June, 1973
ia any accretion to the shares, forming part of the corpus mentioned in clause i , by way of bonus shares allotted to the trust or institution ii any assets being debentures issued by, or on behalf of, any company or corporation acquired by the trust or institution before the 1st day of March, 1983 iia any asset, not being an investment or deposit in any of the forms or modes specified in sub- section 5 of section 11, where such asset is not held by the trust or institution, 1. Substituted by the Finance Act, 1983, w. e. f. 1- 4- 1983. The original clause d was inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1977 and was amended by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978 and the Finance Act, 1982, w. e. f. 1- 4- 1982. 4. The words and such assets were not purchased by the trust or institution or acquired by it by conversion of, or in exchange for, any other asset omitted by the Finance Act, 1992, w. r. e. f. 1- 4- 1983. 5. Inserted by the Finance Act, 1992, w. r. e. f. 1- 4- 1983. 6. Inserted by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1983. otherwise than in any of the forms or modes specified in sub- section 5 of section 11, after the expiry of one year from the end of the previous year in which such asset is acquired or the 31st day of March, 1993 whichever is later iii any funds representing the profits and gains of business, being profits and gains of any previous year relevant to the assessment year commencing on the 1st day of April, 1984 or any subsequent assessment year. Explanation.- Where the trust or institution has any other income in addition to profits and gains of business, the provisions of clause iii of this proviso shall not apply unless the trust or institution maintains separate books of account in respect of such business. Explanation.- For the purposes of sub- clause ii of clause c , in determining whether any part of the income or any property of any trust or institution is during the previous year used or applied, directly or indirectly, for the benefit of any person referred to in sub- section 3 , in so far as such use or application relates to any period before the 1st day of July, 1972 , no regard shall be had to the amendments made to this section by section 7 other than sub- clause ii of clause a thereof of the Finance Act, 1972 .
any assets being debentures issued by, or on behalf of, any company or corporation acquired by the trust or institution before the 1st day of March, 1983
iia any asset, not being an investment or deposit in any of the forms or modes specified in sub- section 5 of section 11, where such asset is not held by the trust or institution, 1. Substituted by the Finance Act, 1983, w. e. f. 1- 4- 1983. The original clause d was inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1977 and was amended by the Finance No. 2 Act, 1977, w. e. f. 1- 4- 1978 and the Finance Act, 1982, w. e. f. 1- 4- 1982. 4. The words and such assets were not purchased by the trust or institution or acquired by it by conversion of, or in exchange for, any other asset omitted by the Finance Act, 1992, w. r. e. f. 1- 4- 1983. 5. Inserted by the Finance Act, 1992, w. r. e. f. 1- 4- 1983. 6. Inserted by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1983. otherwise than in any of the forms or modes specified in sub- section 5 of section 11, after the expiry of one year from the end of the previous year in which such asset is acquired or the 31st day of March, 1993 whichever is later
any funds representing the profits and gains of business, being profits and gains of any previous year relevant to the assessment year commencing on the 1st day of April, 1984 or any subsequent assessment year. Explanation.- Where the trust or institution has any other income in addition to profits and gains of business, the provisions of clause iii of this proviso shall not apply unless the trust or institution maintains separate books of account in respect of such business. Explanation.- For the purposes of sub- clause ii of clause c , in determining whether any part of the income or any property of any trust or institution is during the previous year used or applied, directly or indirectly, for the benefit of any person referred to in sub- section 3 , in so far as such use or application relates to any period before the 1st day of July, 1972 , no regard shall be had to the amendments made to this section by section 7 other than sub- clause ii of clause a thereof of the Finance Act, 1972 .
Without prejudice to the generality of the provisions of clause c and clause d of sub- section 1 , the income or the property of the trust or institution or any part of such income or property shall, for the purposes of that clause, be deemed to have been used or applied for the benefit of a person referred to in sub- section 3 ,- a if any part of the income or property of the trust or institution is, or continues to be, lent to any person referred to in sub- section 3 for any period during the previous year without either adequate security or adequate interest or both b if any land, building or other property of the trust or institution is, or continues to be, made available for the use of any person referred to in sub- section 3 , for any period during the previous year without charging adequate rent or other compensation c if any amount is paid by way of salary, allowance or otherwise during the previous year to any person referred to in sub- section 3 out of the resources of the trust or institution for services rendered by that person to such trust or institution and the amount so paid is in excess of what may be reasonably paid for such services d if the services of the trust or institution are made available to any person referred to in sub- section 3 during the previous year without adequate remuneration or other compensation e if any share, security or other property is purchased by or on behalf of the trust or institution from any person referred to in 1. Substituted for 1992 by the Finance Act, 1992, w. e. f. 1- 4- 1992. 2 2 Inserted by the Finance Act, 1972, w. e. f. 1- 4- 1973. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. sub- section 3 during the previous year for consideration which is more than adequate f if any share, security or other property is sold by or on behalf of the trust or institution to any person refer- red to in sub- section 3 during the previous year for consideration which is less than adequate g if any income or property of the trust or institution is diverted during the previous year in favour of any person referred to in sub- section 3 Provided that this clause shall not apply where the income, or the value of the property or, as the case may be, the aggregate of the income and the value of the property, so diverted does not exceed one thousand rupees h if any funds of the trust or institution are, or continue to remain, invested for any period during the previous year not being a period before the 1st day of January, 1971 in any concern in which any person referred to in sub- section 3 has a substantial interest.
a if any part of the income or property of the trust or institution is, or continues to be, lent to any person referred to in sub- section 3 for any period during the previous year without either adequate security or adequate interest or both
b if any land, building or other property of the trust or institution is, or continues to be, made available for the use of any person referred to in sub- section 3 , for any period during the previous year without charging adequate rent or other compensation
c if any amount is paid by way of salary, allowance or otherwise during the previous year to any person referred to in sub- section 3 out of the resources of the trust or institution for services rendered by that person to such trust or institution and the amount so paid is in excess of what may be reasonably paid for such services
d if the services of the trust or institution are made available to any person referred to in sub- section 3 during the previous year without adequate remuneration or other compensation
e if any share, security or other property is purchased by or on behalf of the trust or institution from any person referred to in 1. Substituted for 1992 by the Finance Act, 1992, w. e. f. 1- 4- 1992. 2 2 Inserted by the Finance Act, 1972, w. e. f. 1- 4- 1973. 3. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. sub- section 3 during the previous year for consideration which is more than adequate
f if any share, security or other property is sold by or on behalf of the trust or institution to any person refer- red to in sub- section 3 during the previous year for consideration which is less than adequate
g if any income or property of the trust or institution is diverted during the previous year in favour of any person referred to in sub- section 3 Provided that this clause shall not apply where the income, or the value of the property or, as the case may be, the aggregate of the income and the value of the property, so diverted does not exceed one thousand rupees
h if any funds of the trust or institution are, or continue to remain, invested for any period during the previous year not being a period before the 1st day of January, 1971 in any concern in which any person referred to in sub- section 3 has a substantial interest.
The persons referred to in clause c of sub- section 1 and sub- section 2 are the following, namely- a the author of the trust or the founder of the institution b any person who has made a substantial contribution to the trust or institution, that is to say, any person whose total contribution up to the end of the relevant previous year exceeds fifty thousand rupees c where such author, founder or person is a Hindu undivided family, a member of the family CC any trustee of the trust or manager by whatever name called of the institution d any relative of any such author, founder, person, member, trustee or manager as aforesaid e any concern in which any of the persons refer- red to in clauses a , b , c , cc and d has a substantial interest.
a the author of the trust or the founder of the institution
b any person who has made a substantial contribution to the trust or institution, that is to say, any person whose total contribution up to the end of the relevant previous year exceeds fifty thousand rupees
c where such author, founder or person is a Hindu undivided family, a member of the family CC any trustee of the trust or manager by whatever name called of the institution
CC any trustee of the trust or manager by whatever name called of the institution
d any relative of any such author, founder, person, member, trustee or manager as aforesaid
e any concern in which any of the persons refer- red to in clauses a , b , c , cc and d has a substantial interest.
Notwithstanding anything contained in clause c of sub- section 1 but without prejudice to the provisions contained in clause d of that sub- section, in a case where the aggregate of the funds of the trust or institution invested in a concern in which any person referred to in sub- section 3 has a substantial interest, does not exceed five per cent of the 1. Substituted by the Finance Act, 1972, w. e. f. 1- 4- 1973. 2. Inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1977. 3. Substituted for twenty- five by the Finance Act, 1994, w. e. f. 1- 4- 1995. Earlier, twenty five was substituted for five by the Taxation Laws Amendment Act, 1984, w. e. f. 1- 4- 1985. 4. Inserted by the Finance Act, 1972, w. e. f. 1- 4- 1973. 5. Substituted for or member, ibid. 6. Inserted, ibid. 7. Inserted by the Finance Act, 1983, w. e. f. 1- 4- 1983. capital of that concern, the exemption under section 11 or section 12 shall not be denied in relation to any income other than the income arising to the trust or the institution from such investment, by reason only that the funds of the trust or the institution have been invested in a concern in which such person has a substantial interest.
Notwithstanding anything contained in clause d of sub- section 1 , where any assets being debentures issued by, or on behalf of, any company or corporation are acquired by the trust or institution after the 28th day of February, 1983 , but before the 25th day of July, 1991 , the exemption under section 11 or section 12 shall not be denied in relation to any income other than the income arising to the trust or the institution from such assets, by reason only that the funds of the trust or the institution have been invested in such assets if such funds do not continue to remain so invested in such assets after the 31st day of March, 1992 . Explanation 1-For the purposes of sections 11, 12, 12A and this section, trust includes any other legal obligation and for the purposes of this section relative, in relation to an individual, means- i spouse of the individual ii brother or sister of the individual iii brother or sister of the spouse of the individual iv any lineal ascendant or descendant of the individual v any lineal ascendant or descendant of the spouse of the individual vi spouse of a person referred to in sub- clause ii , sub- clause iii , sub- clause iv or sub- clause v vii any lineal descendant of a brother or sister of either the individual or of the spouse of the individual. Explanation 2.- A trust or institution created or established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or women and children shall not be deemed to be a trust or institution created or established for the benefit of a religious community or caste within the meaning of clause b of sub- section 1 . Explanation 3.- For the purposes of this section, a person shall be deemed to have a substantial interest in a concern,- i in a case where the concern is a company, if its shares not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits carrying not less than twenty per cent of the voting power are, at any time during the previous year, owned beneficially by such person or partly by such person and partly by one or more of the other persons referred to in sub- section 3 1. Inserted by the Finance Act, 1972, w. e. f. 1- 4- 1973. 2. Substituted for moneys by the Finance No. 2 Act, 1971, w. e. f. 1- 4- 1971 3. Inserted by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1983. The original sub- section 5 was inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1976 and omitted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 4. Omitted by the Finance Act, 1983, w. e. f. 1- 4- 1983. It was inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1977. 5. Substituted by the Finance Act, 1972, w. e. f. 1- 4- 1973. ii in the case of any other concern, if such person is entitled, or such person and one or more of the other persons referred to in sub- section 3 are entitled in the aggregate, at any time during the previous year, to not less than twenty per cent of the profits of such concern.
spouse of the individual
brother or sister of the individual
brother or sister of the spouse of the individual
any lineal ascendant or descendant of the individual
any lineal ascendant or descendant of the spouse of the individual
spouse of a person referred to in sub- clause ii , sub- clause iii , sub- clause iv or sub- clause v
any lineal descendant of a brother or sister of either the individual or of the spouse of the individual. Explanation 2.- A trust or institution created or established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or women and children shall not be deemed to be a trust or institution created or established for the benefit of a religious community or caste within the meaning of clause b of sub- section 1 . Explanation 3.- For the purposes of this section, a person shall be deemed to have a substantial interest in a concern,-
in a case where the concern is a company, if its shares not being shares entitled to a fixed rate of dividend whether with or without a further right to participate in profits carrying not less than twenty per cent of the voting power are, at any time during the previous year, owned beneficially by such person or partly by such person and partly by one or more of the other persons referred to in sub- section 3 1. Inserted by the Finance Act, 1972, w. e. f. 1- 4- 1973. 2. Substituted for moneys by the Finance No. 2 Act, 1971, w. e. f. 1- 4- 1971 3. Inserted by the Finance No. 2 Act, 1991, w. r. e. f. 1- 4- 1983. The original sub- section 5 was inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1976 and omitted by the Finance Act, 1983, w. e. f. 1- 4- 1983. 4. Omitted by the Finance Act, 1983, w. e. f. 1- 4- 1983. It was inserted by the Taxation Laws Amendment Act, 1975, w. e. f. 1- 4- 1977. 5. Substituted by the Finance Act, 1972, w. e. f. 1- 4- 1973.
in the case of any other concern, if such person is entitled, or such person and one or more of the other persons referred to in sub- section 3 are entitled in the aggregate, at any time during the previous year, to not less than twenty per cent of the profits of such concern.