Summarize the following court judgment. Appeal No. 1593 of 1968. Appeal from the judgment and order dated	 September 20	 1963 of the Calcutta High Court in Income tax Reference ' No. 23 of 1960. Sachin Chaudhari	 T. A. Ramachandran and D. N. Gupta	 for the appellant. D.Narsaraju	 R. N. Sachthey and B. D. Sharma	 for the respondent. 763 The appellant (hereinafter referred to as the assessee was carrying on the business of crushing sugar cane and gur refining. M/s. Andrew Yule & Co. were acting as the managing agents of the assessee. In a letter dated 5th February	 1946 addressed to the share holders of the assessee the managing agents referred	 to the alarming increase of Government interference in the affairs of the sugar industry in Bihar and the increase of wages of the workers	 as well as the levy of a cess of Government and deterioration in the cane crops. In view of this state of affairs	 the managing agents apprehended a loss and suggested that the company 's affairs should be put on a "less discouraging basis" by accepting the offer of a lease of the company as a running concern from the Standard Refinery & Distillery Ltd. At an extra ordinary general meeting of the share holders of the assessee company held on 5th March	 1946 it was decided to authorise the directors to enter into a lease with the said Standard Refinery & Distillery Ltd. By an indenture of 15th March	 1948 the lease was executed to come into effect retrospectively from 1st June	 1945. The term of the lease was originally for 5 years commencing from 1st June 1945 with an option to the lessee to continue for further five years and thereafter two further options to the lessee	 each for five years	 on the same terms and conditions	 but subject to the payment of higher rates of royalties and also subject to the option on the part of the assessee company to terminate the lease by a resolution of the shareholders of the company to be held before 30th November in any year after the first two years. This option of termination of the lease was not exercised by the assessee company. The consideration of the lease as described in clause 7 of the indenture was royalty payable on the manufacture of sugar and molasses. The royalty on sugar was to be at the rate of Rs. 75 per hundred maunds of sugar manufactured for the first and second term of five years	 at the rate of Rs. 82.50 per hundred maunds of sugar manufactured for the third five year period and at Rs. 90 for the fourth five year period. The royalty on molasses was to be calculated at 3 pies per maund on all molasses sold during each year of the original period or the renewed period of the lease. The computation of the royalty was subject to a minimum payment of Rs. 65	000 per annum. For the assessment year 1955 56 the relevant accounting year of the assessee ended on 31st May	 1954. In the assessment proceedings for 1955 56 the assessee 's main contention was that the lease granted under the indenture of 15th March	 1948 was a lease of a commercial asset and therefore the income arising from the lease should be assessed under section 10 of the Income Tax Act and the assessee should be allowed depreciation and development rebate in accordance with clause (vi a) and clause (vi b) of sub section (2) of section 10 of the Income 764 Tax Act. The Income Tax Officer assessed the income under section 12 of the Act as being income under the head "other sources" and held that no additional depreciation or development rebate could be allowed as claimed by the assessee. According to the assessee	 the	 income derived from the lease of the sugar factory was income from business because the factory was leased as a going concern and the rent of the building	 machinery	 plant and spare parts was fixed at a certain rate per maund of sugar produced	 and at a certain rate per maund of molasses sold. On appeal	 the Appellate Assistant Commissioner found that it was a simple lease of the building and machinery in a sugar factory	 and as such the method of payment based on production could not affect the character and nature of the income derived under the said lease. In further appeal the Appellate Tribunal came to the conclusion that on the facts stated the case fell under section 12 and not under section 10 and that since sub section (3) of section 12 did not include clauses (vi a) and (vi b) of section 10(2) the claim of additional depreciation and development rebate could not be allowed. At the instance of the assessee the Appellate Tribunal stated a case to the High Court on the following questions of law under section 66(1) of the Income Tax Act	 1922 (hereinafter referred to as the Act) : "(1) Whether on the facts and in the circumstances of the case	 the income of the assessee company was liable to be assessed under section 12 of the Indian Income Tax Act and not under section 10 of the said Act ? (2)Whether on the facts and in the circumstances of the case	 additional depreciation and development rebate can be allowed as a deduction ?" The High Court answered both the	 questions against the assessee holding that the income was liable to be assessed under section 12 and that no additional depreciation and development rebate could be allowed. Section 10 of the Act stood as follows at the material time "10. (1) The tax shall be payable by an assessee under the head 'profit sand gains of business	 profession or vocation ' in respect of the profit or gain of any business	 profession or vocation carried on by him. (2)Such profits or gains shall be computed after making the following allowances	 namely (vi)in respect of depreciation of such buildings	 machinery	 plant or furniture being the property of the assessee	 a sum equivalent	 where the assets are ships 765 other than ships ordinarily plying on inland waters	 to such percentage on the original cost thereof to the assessee as may in any case or class of cases be prescribed and in any other case	 to such percentage on the written down value thereof as may in any case or class of cases be prescribed : and where the buildings have been newly erected	 of the machinery or plant being new	 not being machinery or plant entitled to the development rebate under	 clause (vi b)	 has been installed	 after the 31st day of March	 1945	 a further sum (which shall however not be deductible in determining the written down value for the purposes of this clause) in respect of the year of erection or installation equivalent (a) in the case of buildings the erection of which is begun and completed between the 1st day of April 1946 and the 31st day of March 1956 (both days inclusive)	 to fifteen per cent of the cost thereof to the assessee; (b) in the case of other buildings	 to ten per cent of the cost thereof to the. assessee; (c) in the case of machinery or plant	 to twenty per cent of the cost thereof to the assessee; Provided that 765 (c)the aggregate of all allowances in respect of depreciation made under this clause and clause (vi a) or under any Act repealed hereby	 or under the Indian Income Tax Act	 1886 (II of 1886)	 shall	 in no case	 exceed the original cost to the assessee of the buildings	 machinery	 plant or furniture	 as the case may be; (vi a) in respect of depreciation of buildings newly erected	 or of machinery or plant being new which has been installed	 after the 31st day of March	 1948	 a further sum (which shall be deductible in determining the written down value) equal to the amount admissible under clause (vi) (exclusive of the extra allowance for double or multiple shift working of the machinery or plant and the initial depreciation allowance admissible under that clause for the first year of erection of the building or the installation of the machinery or Plant) in not more than five successive assessments for the financial years next following the previous year Sup/69 14 766 in which such buildings are erected and such machinery and plant installed and falling within the period commencing on the 1st day of April 1949 and ending on the 31st day of March	 1959; (vi b) in respect of machinery or plant being new	 which has been installed after the 31st day of March	 1954	 and which is wholly used for the purposes of the business carried on by the assessee	 a sum by way of development rebate in respect of the year of installation equivalent to twenty five per cent of the actual cost of such machinery or plant to the assessee; Provided that no allowance under this clause shall be made unless the particulars prescribed for the purpose of clause (vi) have been furnished by the assessee in respect of such machinery or plant; Section 12 was to the following effect 12. The tax shall be payable by an assessee under the head 'Income from other sources ' in respect of income	 profits and gains of every kind which may be included in his total income (if not included under any of the preceding heads). (2)Such income	 profits and gains shall be computed after making allowance for any expenditure (not being in the nature of capital expenditure) incurred solely for the purpose of making or earning such income	 profits or gains. (3)Where an assessee lets on hire machinery	 plant or furniture belonging to him	 he shall be entitled to allowances in accordance with the provisions of clauses (iv)	 (v)	 (vi) and (vii) of sub section (2) of section 10. (4)Where an assessee lets on hire machinery	 plant or furniture belonging to him and also buildings	 and the letting of the buildings is inseparable from the letting of the said machinery	 plant or furniture	 he shall be entitled to allowances in accordance with the 767 provisions of clauses (iv)	 (v)	 (vi) and (vii) of subsection (2) of section 10 in respect of such buildings". The main contention of the assessee was that the lease as contemplated in the indenture dated 15th March	 1948 was a lease of a commercial asset	 and	 therefore	 the income arising from the lease should be assessed under section 10(1) of the Act and not under section 12(1). In order to examine the validity of this argument it is necessary to set out the relevant clauses of the indenture of lease. Clause ( 1) of the lease provided that the lease was for a term of five years commencing from 1st June 1945 with an option to continue for a further term of five years and thereafter two further options of five years in each case on the same terms and conditions subject to higher payment of rates of royalties. Clause 2: The lessee shall be entitled to run the said sugar factory and all other machinery annexed to the same and use all the tools and implements	 buildings and premises	 offices	 and erections and utensils and all other things which are now in or upon the said premises and which may be added from time to time thereto provided always that the lessees shall not at any time remove the plant and/or machinery etc. hereby demised or any part thereof from the said premises elsewhere for the purpose of or in connection with the lessees ' other interests. Clause 3 : The lessees shall at the time of taking over possession of the factory from the lessors be entitled free of payment to the goods already manufactured during the current crushing season	 i.e. 1945 46 or in the process of manufacture and/or to be hereafter manufactured by the lessees and the lessees shall have absolute discretion to sell and deal with the same in such manner as they think fit and proper. Clause 5: The lessees shall also be entitled to erect	 construct and maintain any other machinery as the lessees may think fit and proper. All machinery brought in and erected by the lessees would remain the lessees ' property and after the termination of the lease the lessees shall be entitled to remove the same provided always that the lessees shall forthwith repair and make good all damage caused to the demised premises by such removal of the lessees ' machinery. 768 Clause 7 Clause 7 provides for the payment of royalty. The royalty on sugar was to be computed at the rate of Rupees Seventy five per 100 maunds of sugar manufactured for the first five years as well as next five years then at the rate of Rupees eighty two and annas eight per 100 maunds of sugar manufactured for the third five years and Rs. 90/ for the fourth five years. The royalty on molasses was computed at three pies per maund on all molasses sold during each year of the original lease period and any renewals thereof subject to the payment of a minimum royalty of Rs. 6	500/per annum. Clause 8 : This clause provides that the lessee shall in addition to the royalty reserved be responsible for all the running expenses of the factory including salaries and wages and all factory staff and labour and shall pay all sugar excise duty etc. excepting the ground rents payable to the landlords and taxes on income chargeable to the lessors and shall fully reimburse the lessors in respect of such expenses which have already been incurred by the lessors since the first day of One thou sand nine hundred and forty five and property tax. Clause 17 : (a)The lessors will keep the demised premises insured to the full value thereof and shall pay all expenses which will be incurred for insuring the demised premises. (b)The lessors shall pay all expenses of running the lessors ' company e.g. Directors fees	 Audit fees	 Ground rents etc. but not the running expenses of the factory and premises hereby demised and shall also pay for all the expenditure for additions	 alterations breakdown and/or renewals and replacement of capital nature (i.e. dubitable to block account) to buildings and machineries etc. and other similar expenses of a capital nature on the demised premises. It appears from clauses 2 and 5 that the existing machinery which was. owned by the lessor could not be removed and that the lessee would be entitled to set up additional machinery without interference from the lessor and that on the termination of the lease the lessee would be entitled to remove the same without causing any damage to the property demised. Clause 3 con 769 templates that if during the period 1945 46 the lessors sell the commodity manufactured the price thereof should go back	 to the lessee. Mr. Choudhury referred to clause 6 which entitled the lessee to use the railway siding during the period of the lease. But the right of use of railway siding by the lessee under this clause cannot in any way be construed as the exercise of control over the business of the assessee. The provision for minimum royalty of Rs. 65	000/ per annum indicates that the assessee had no direct interest in the production of the factory. The cumulative effect of clauses 11	 12	 13 and 14 is that the lessor will have no concern with the production of the factory which is the principal part of the business	 previously carried on by the lessor. The provisions in clause 17 are that the lessors shall keep the demised premises insured to the full value and to repair and replace the machines which are of capital nature. On a scrutiny of all the clauses of the indenture of lease	 our conclusion is that the intention of the assessee was to part with the entire machinery of the factory and the premises with the obvious purpose of earning rental income. It was not the intention of the assessee to treat the factory and machinery etc. as a commercial concern during the subsistence of the lease. The primary condition for the application of section 10 of the Act is that the tax is payable by an assessee under the head "profits and gains of business" in respect of business carried on by him. When an assessee does not carry on business at all	 section 10 cannot be applicable and the income that he receives cannot bear the character of profits of business. As we have already shown there is no direct nexus between the income of the assessee and the production of the factory. The royalty payable to the assessee was not paid under clause 7 of the indenture of lease for the production in the factory. The production was only a measure of the royalty to be paid and	 in any event	 the measure of payment had nothing to do with the character of the payment as a receipt from business or from other sources. It follows that in the circumstances of this case the income of the assessee cannot be characterised as income from the activity of the assessee carrying on any business. The High Court was therefore right in holding that the income of the assessee was liable to be assessed under section 12 and not under section 1 0 of the Act. On behalf of the assessee reference was made to the decision of this Court in Commissioner of Excess Profit Tax	 Bombay City vs Shri Lakshmi Silk Mills Ltd.(1) in which the respondent company which was formed for the purpose of manufacturing silk cloth installed a plant for dying silk yarn as a part of its business during the relevant charging accounting period. Owing to the difficulty in obtaining silk yam on account of the war it (1) 770 could not make use of this plant which had remained idle for some time. In August	 1943	 the plant was let out to another company on a monthly rent. The question arose whether the income received by the	 respondent company in the chargeable accounting period by way of rent was income from business and assessable to excess profit tax. It was held by this Court that a part of the assets did not cease to be commercial assets of that business merely because it was temporarily put to a different use or let out to another and accordingly the income from the assets would be profits of the business irrespective of the manner in which the assets were exploited by the company. But this Court clearly indicated that no general principle could be laid down which would be applicable to all cases and that each case must be decided on its own circumstances according to ordinary commonsense principles. The material facts of Lakshmi Silk Mills Ltd. (1) are that only a part of the machinery was Let out on lease and the rest of the machinery was worked by the assessee. The letting out of the machinery was for a short period of five months. There was also no letting out of the premises of the factory by the assessee. The ratio of the decision in Lakshmi Silk Mills Ltd.(1) is therefore not applicable to the present case. Reference was made on behalf of the assessee to the decision in Narain Swadeshi Weaving Mills vs Commissioner of Excess Profits Tax(2) in which the assessee firm carrying on a manufacturing business consisted of three partners	 N and his two sons R & G. In April	 1940	 a public limited company was incorporated with the object of taking over the business of the assessee firm. This company was director controlled and the directors were N	 his three sons R	 G & S and a brother in law of G. The company purchased only the building and leasehold rights from the assessee firm but took over from it on lease at an annual rent the plant and machinery. The assessee firm did not thereafter manufacture anything and it bad accordingly no further trading or commercial activity. In the circumstances	 it was held that letting out of the plant and the machinery by the assessee to the company could not fall within the definition of "business" under section 2(5) and as the assessee firm had	 no business during the relevant period to which the Act applied	 section 10A could not be invoked by the Excess Profit Tax Authorities. It was however pointed out that whether a particular activity amounts to any trade	 commerce or manufacture or any adventure in the nature of trade	 commerce	 or manufacture is always a difficult question to answer and no general principle ran be laid down which would be applicable to all cases and each case must be decided in the setting and background 'of its own facts. It is evident that the material facts in the present case are somewhat different from those of Narain Swadeshi (1) (2) 771 Weaving Mills ' case(1) for there is no out right sale of the building of the factory but only a lease of the factory premises together with the machinery for a long period of years. For the reasons already expressed our conclusion is that the intention of the assessee was not to treat the factory etc. as a commercial asset during the subsistence of the lease. In other words	 the intention of the assessee was to go out of the business altogether so far as the factory and the machinery was concerned with effect from 1st June	 1945 and the intention was to use the income arising from the royalty in its capacity as the owner of the factory. it follows therefore that the first question was rightly answered by the High Court in favour of the Commissioner of Income Tax. As regards the second question the argument was stressed by Mr. Choudhury that clauses (vi a) and (vi b) of section 10(2) are ancillary to clause (vi) and should be taken to be included within clause. (vi) as mentioned in sub section (3) of section 12. It appears that clause (vi a) was inserted by section 11 of the Taxation Laws (Extension to Merged States and Amendment Act	 1949). Clause (vi b) was inserted by section 8 of the Finance Act	 1955 with effect from 1st April	 1955. At the time of making the amendment under the said Acts	 no amendment was made to section 12(3) of the Act. It was argued by Mr. Choudhury that although this was not done specifically it followed by implication that additional depreciation allowance in respect of new assets and development rebate would cornsern within the ambit of section 12(3). It appears to us that clauses (vi a) and (vi b) are not ancillary to clause (vi) because the scheme of clauses (vi a) and (vi b) is somewhat different. Clause (vi a) which was inserted in 1949 gives additional depreciation allowance over and above the initial allowance which was formerly available under 'the second paragraph of clause (vi) in respect of buildings newly erected and new machinery and plant but not furniture installed after the 31st March	 1948. The additional allowance under this clause is confined to not more than five successive assessments falling within the period from 1st April 1949 and 31st March 1959. Further it is deductible in deter mining the written down value	 unlike the initial allowance granted under the second paragraph of clause (vi). Clause (vi b) was inserted by the Finance Act	 1955. It grants development rebate in respect of machinery and plant provided that the machinery or plant is new and has been installed after the 31st March	 1954; and provided further that it is used wholly for the purpose of the assessee 's business and the particulars prescribed for the purpose of clause (vi) have been furnished. It is manifest that clauses (vi a) and (vi b) introduce a new scheme (1)26 I.T.R. 765. 772 and cannot be treated as an integral part of clause (vi) by implication. Apart from this consideration it appears to us that these clauses were not specifically engrafted by Parliament in section 12(3) and section 12(4) while amending section 10(2) of the Act. It is therefore not permissible for the Court to read these same clauses by implication in section 12(3) and section 12(4) of the Act. The duty of the Court is to interpret the words that Parliament has used	 it cannot supply the gap disclosed in an Act or to make up the deficiencies. "If"	 said Lord Brougham	 in Gwynne vs Burnell	(1) "we depart from the plain and obvious meaning on account of such views (as those pressed in argument on 43. Geo. 3	 c. 99) we do not in truth construe the Act	 but alter it. We add words to it or vary the words in which its provisions are couched. We supply a defect which the legislature could easily have supplied	 and are making the law	 not interpreting it" (Cf. Kumar Kamalaranian Roy vs Secretary of State(2). Accordingly	 we are of opinion that the assessee is not entitled to additional depreciation and development rebate and the second question was rightly answered by the High Court in the negative. For these reasons we hold that the judgment of the High Court dated 20th September	 1963 is correct and this appeal must be dismissed with costs. V.P.S. Appeal dismissed.

The assessee company	 carrying on the business of crushing sugar cane and gur refining	 apprehending loss	 entered into a lease with another company. Under cl. (7) of the indentures the consideration of the lease. was royalty payable on the manufacture of sugar and molasses and was	 subject to a minimum payment of Rs. 65	000 per annum. The lease was. for a term of 5 years commencing from 1st June 1945 with an option to continue for a further term of 5 years and thereafter with two further options of 5 years on the same terms and conditions subject to payment of higher rates of royalty. Clauses 2 to 5 provided that the existing machinery which was owned by the lessor could not be removed and that the lessee would be entitled to set up additional machinery without interference from the lessor and that on the termination of the lease the lessee would be entitled to remove the same without causing any damage to the property demised. The effect of cls. 11 to 14 was that the lessor would have no concern with the production of the factory which was the principal part of the business previously carried on by the lessor. In assessment proceedings for the assessment year 1955 56	 the assessee contended that the lease was a lease of a commercial asset and therefore the income arising from it should be assessed under section 10 of the Income tax Act	 1922	 and hence	 the assessee should be allowed depreciation and development rebate in accordance with cls. (vi a) and (vi b) of section 10(2). The department and the High Court rejected the assessee 's contention and held that the income was liable to be assessed under section 12 as 'income from other sources ' and that no additional depreciation and development rebate could be allowed. In appeal to this Court it was contended that : (1) the income of the assessee was liable to be assessed under section 10 of the Income tax Act and	 not under section 12; and (2) Since the benefit under cl. (vi) of section 10(2) is allowed to the assessee under section 12(3)	 the assessee should be held to be entitled to additional depreciation and development rebate under cls. (vi a) and (vi b) even if the assessment was under section 12	 on the ground that those two clauses are ancillary to cl. (vi) and should be taken to have been included in section 12(3) along with cl. HELD : (1) The income of the assessee could not be characterised ' as income from the activity of the assessee carrying on any business and ' was therefore	 liable to be assessed under section 12 and not under section 10 of the	 income tax Act. [769 F G] The primary condition for the application of section 10 is that the tax is payable by an assessee under the head 'profits and gains of business ' in respect of business carried on by him. When an assessee does not carry on business at all	 section 10 cannot be applicable and the income that he receives cannot bear the character of profits of business. [769 D E] 762 In the present case	 a scrutiny of all the clauses of the indenture of lease	 shows that the intention of the assessee was to go out of the business altogether	 so far as the factory and machinery were concerned with effect from 1st June 1945	 to part with the entire machinery of the factory and the premises with the purpose of earning rental income	 and to use the income arising from the royalty in its capacity as owner of the factory. It was not the intention of the assessee to treat the factory and machinery as a commercial concern or asset during the subsistence of the lease. The provision for payment of minimum royalty indicates that the assessee had no direct interest in the production of the factory. The royalty was not paid for the production in the factory. There was no direct nexus between the income of the assessee and the production of the factory. The production was only a measure of the royalty to be paid and had nothing to do with the character of the payment as a receipt from business or from other sources. [769 C D	 E F] Commissioner of Excess Profit Tax	 Bombay City vs Shri Lakshmi Silk Mills Ltd. and Narain Swadeshi Weaving Mills vs Commissioner of Excess Profits Tax	 	 distinguished. (2)Clause (vi a)	 which was inserted in the Act in 1949	 gives additional depreciation allowance over and above the initial allowance which was previously available under cl. (vi) in respect of buildings newly erected and new machinery and plant but not furniture installed after 31st March 1948. The additional allowance is confined to not more than 5 successive assessments falling within the period from 1st April 1949 and 31st March 1959. It is deductible in determining the written down value	 unlike the initial allowance granted under cl. Clause (vi b) was inserted by the Finance Act	 1955. It grants development rebate in respect of machinery and plant provided that the machinery or plant is new and has been installed after 31st March 1954	 and provided further that it is used wholly for the purpose of the assessee 's business and the particulars prescribed for the purpose of cl. (vi) have been furnished. Clauses (Vi a) and (vi b) thus introduce a new scheme and cannot be treated as an integral part of cl. (vi) by implication. Further	 it is not permissible for the Court to read the clauses by implication into section 12(3) and (4)	 because	 the clauses were not specifically engrafted by Parliament into section 12 while amending section 10(2). [771 E H; 772 A B] Kumar Kamalaranjan Roy vs Secretary of State	 L.R. 66 I.A. 110	 referred to.