Summarize the following court judgment. Appeal No. 4 of 1956. Appeal by special leave from the judgment and order dated June 10	 1953	 of the Calcutta High Court in Income tax Reference No. 39 of 1952. K. N. Rajagopal Sastri	 R. H. Dhebar and D. Gupta	 for the appellant. B. Sen	 P. K. Ghosh and P. K. Bose	 for the respondent. April 20. 'The following Judgments were delivered SINHA	 J. The question for determination in this appeal by special leave	 is whether the assesses	 the Calcutta National Bank Ltd. (in liquidation)	 is liable to Excess Profits Tax in respect of Rs. 86	000/ 	 which it realised by way of rent of the building at its headquarters in Calcutta	 during the accounting period 663 ending March 31	 1946. The Department and the Income tax Appellate Tribunal answered the question in the affirmative. On a statement of the case to the High Court under section 66(1) of the Income tax Act	 a ' Bench of the Calcutta High Court (Chakravartti	 C. J.	 and Lahiri	 J.) answered it in the negative	 reversing the orders of the Department and the Tribunal. As the Bench refused to grant the necessary certificate of fitness	 the appellant applied for	 and obtained	 special leave to appeal	 by an order of this Court dated September 27	 1954	 The facts of this case are short and simple. The assessee was a banking company in a large way of business. It owns a six storeyed building where its offices are located on the ground floor and a part of the 6th floor	 while the rest of the building is let out to tenants. The annual rental income derived from the portion let out	 is about Rs. 86	000/ . The Tribunal found that the portion let out is about four to five times the floor area of the portion of the building occupied by the assessee for the purposes of its own business. By an order dated March 31	 1949	 the Excess Profits Tax Officer assessed the respondent on the said rental income in respect of the accounting period ending March 31	 1946	 under sub r. (4) of r. 4 of Schedule I to the Excess Profits Tax Act 1940 (XV of 1940) (which hereinafter will be referred to as the Act). On appeal by the respondent	 the Appellate Assistant Commissioner	 by his order dated January 3	 1950	 upheld the assessment on the basis of sub r. (2) of r. 4 of Schedule I to the Act. He pointed out that the assessee carries on banking business which includes holding investments	 and thus	 the rental in come in respect of its investments in immovable property	 is included in its business income	 even though it was not chargeable to income tax under section 10 of the Income tax Act. Income from securities	 like shares and properties. 	 is chargeable to income tax under sections 8	 9 and 12 of the Act; but that head of income is chargeable under the Act as business profits. He also pointed out that the assessee had itself included the value of these assets in the computation of its capital	 664 for claiming standard profits. This had been done in If the previous years	 and the assessee bank had accepted the basis and the computation of capital assets during the previous years. On a further appeal by the respondent to the Appellate Tribunal	 the Tribunal held that there was no doubt that the premises were built with a view partly to housing the head office of the company	 and partly for the purpose of being let out to tenants	 and that it was an investment by the Bank in immovable property. The Tribunal also found that this was within the terms of the Memorandum of Association of the respondent company. Hence	 by its order dated March 22	 1951	 the Tribunal held that the letting out of so much of the building as was not occupied by the company itself for its own business	 was a part of its business	 and the rental income was	 thus	 liable to tax under the Act. It made a particular reference to sub r. (4) of r. 4 of Sch. I to the Act	 though the Department appears to have also relied upon sub r. (2) of r. 4	 aforesaid. Thereupon	 the respondent got the Tribunal to state the case to the High Court	 and the following question was accordingly referred to the High Court under section 66(1) of the Income tax Act: " Whether in this case the rental income from immovable property is part of the business income taxable under section 2(5) read with rule 4(4) of Schedule I attached to the Excess Profits Tax Act	 1940. " The matter was heard by the High Court with the result indicated above. Hence	 this appeal by special leave. There is no doubt that excess profits are not chargeable under the Act unless the income falls within the ambit of business profits. Section 2(5) of the Act defines business" as under : business ' includes any trade	 commerce or manufacture or any adventure in the nature of trade	 commerce or manufacture or any profession or vocation	 but does not include a profession carried on by an individual or by individuals in partnership if the profits of the profession depend wholly or mainly on his or their personal qualifications unless such profession 665 consists wholly or mainly in the making of contracts on behalf of other persons or the giving to other persons of advice of a commercial nature in connection with the making of contracts: Provided that where the functions of a company or of a society incorporated by or under any enactment consist wholly or mainly in the holding of investments or other property	 the holding of the investment or property shall be deemed for the purpose of this definition to be a business carried on by such company or society: Provided further that all businesses to which this Act applies carried on by the same person shall be treated as one business for the purposes of this Act;". The definition of " business " under the Act	 is wider than the definition of that term under the Income tax Act (section 2(4)). Section 2 (19) of the Act defines " profits " as follows : " I profits ' means profits as determined in accordance with the First Schedule. " Section 2 (20) defines " standard profits " as follows:" Standard profits means standard profits as computed in accordance with the provisions of Section 6". And the charging section	 section 4 of the Act	 provides that in respect of any business to which the Act applies	 excess profits	 that is	 profits during any chargeable accounting period	 exceeding the standard profits	 shall be charged	 levied and paid. Section 5 of the Act provides as follows: " This Act shall apply to every business of which any part of the profits made during the chargeable accounting period is chargeable to income tax by virtue of the provisions of sub clause (1) or sub clause (ii) of clause (b) of sub section (1) of Section 4 of the Indian Income tax Act	 1922	 or of clause (c) of that sub section : Provided that this Act shall not apply to any business the whole of the profits of which accrue or arise without British India where such business is carried on by or on behalf of a person who is resident 84 666 but not ordinarily resident in British India unless the business is controlled in India; Provided further that where the profits of a part only of a business carried on by a person who is not resident in British India or not ordinarily so resident accrue or arise in British India or are deemed under the Indian Income tax Act	 1922	 so to accrue or arise	 then	 except where the business being the business of a person who is resident but not ordinarily resident in British India is controlled ' in India	 this Act shall apply only to such part of the business	 and such part shall for all the purposes of this Act be deemed to be a separate business; Provided further that this Act shall not apply to any business the whole of the profits of which accrue or arise in an Indian State; and where the profits of a part of a business accrue or arise in an Indian State	 such part shall	 for the purposes of this provision	 be deemed to be a separate business the whole of the profits of which accrue or arise in an Indian State	 and the other part of the business shall	 for all the purposes of this Act	 be deemed to be a separate business. " The First Schedule	 which contains the rules for computation of profits	 provides	 in sub r. 4 of r. 4	 as follows: "(4) In the case of a business which consists wholly or partly in the letting out of property on hire	 the income from the property shall be included in the profits of the business whether or not it has been charged to income tax under Section 9 of the Indian Income tax Act	 1922	 or under any other section of that Act. " Having set out the relevant provisions of the Act	 the first question that arises for consideration	 is whether the letting out of the promises in question can be said to be a business of the assessee bank. The definition of " business " is only an inclusive one	 and includes any sort of trade	 commerce or Manufacture. Can it be said that realization of income from its investments which may be either in shares	 securities or in immovable properties	 is not a part of the business of a banking corporation ? In my opinion	 it will 667 be taking a very narrow view of the functions of a bank to hold that such activities are not within the ambit of the business activities of a bank. In the Memorandum of Association of the assessee bank	 the objects of the company are stated to be: " (a) To carry on all kinds of banking business	 that are generally carried on by Joint Stock Banks. " " (b) To carry on the business of banking in all its branches and departments	 including borrowing	 raising or taking up money	 the lending or advancing money	 securities or properties ; the acquiring	 holding	 issuing and dealing with investment of all kinds; the managing of properties " (c) To purchase	 take on lease or in exchange or otherwise acquire any moveable or immoveable property which the Company may think necessary or convenient for the purpose of its business	 and to construct	 maintain and alter any buildings or works necessary or convenient for the purpose of the company." Apparently	 the bank constructed the six storeyed building not only for its own use and occupation	 but also	 according to the finding of the Appellate Tribunal	 for the major part	 for the purpose of realising rent from tenants. Where land in a big city	 like Calcutta	 is taken for building purposes	 it is common knowledge that erecting a multi storeyed building	 is by itself an investment	 besides affording accommodation for the bank to carry on and advertise its business	 and house its head office and records. The High Court answered the question referred to	 in the negative on the ground that though the income was derived from the holding of property	 the fuilctions of the assessee company did not consist wholly or mainly in the holding of investments or other property	 as required by the proviso to section 2(5) of the Act. Since the requirement of the first proviso to section 2(5) of the Act	 was not satisfied	 no question of the application of sub r. (4) of r. 4	 could arise; and even if such a question could arise	 the word " business " in that sub rule	 must take its colour from the main provisions of the section. This conclusion was reached by 668 the learned Chief Justice	 who delivered the opinion of the Court	 by starting with the premise that for determining the nature of the income of the company	 it was not necessary to consider the provisions of the definition of " business "	 contained in the main clause of section 2(5)	 which was also assumed to be parallel to the connotation of the term " business " under the Indian Income tax Act. Having	 thus	 excluded	 without giving any reasons why they had to be excluded	 the provisions of the main clause of the definition of " business "	 as contained in the Act	 the learned Chief Justice addressed himself to the question whether the first proviso to the definition clause	 which was in the nature of an additional provision	 could govern the facts of the case	 and bring it within the ambit of that kind of business to which the Act applied. The learned Chief Justice rightly pointed out that the first proviso is limited to incorporated bodies and had no reference to individuals. Then	 the learned Chief Justice observed : " It is to be noticed that in the contemplation of this proviso	 property is something different from investments	 for it speaks of I investments or other property '. It is also to be noticed that if the requirements of the proviso are satisfied	 the holding of investments or other property shall be deemed to be a business '	 which implies that it is not really a business and	 but for the special provisions made by proviso would not be within the general definition contained in the main clause ". It is doubtful whether these observations are entirely correct	 but	 as will presently appear	 we are not so much concerned with the _proviso as with the main provisions of the definition clause (section 2(5) ). The conclusion of the learned Chief Justice may better be stated in his own words	 as follows: " It appears to me that the first matter to which we must address ourselves in answering the question before us is: are the functions of the assessee company such that the holding of the building in question or buildings or other property and investments in general must be deemed to be its business for the purposes of the Excess Profits Tax Act under the first 669 proviso to section 2(5) ? In order that question may be answered in favour of the Revenue	 it is necessary that the holding of investments or other property should be the only or the principal function of the assessee company. As I have said	 the assessee company	 is a banking company in a large way of business. It is hardly disputable	 and indeed it was not disputed before us	 that the holding of investments or other property was not its sole or primary occupation	 much less the holding of the particular building in question". In my opinion	 the aforesaid conclusion of the High Court suffers from two fundamental errors	 namely	(1) that the main clause of the definition section is out of the way in determining the present controversy	 and (2) that it was the proviso only which had to be considered in order to answer the question referred. In the first instance	 the learned Chief Justice is not entirely correct in observing that the definition of the term "business" follows the definition of the same term in the Indian Income tax Act. As already observed	 the definition under the Act	 is wider than that under the Income tax Act	 in so far as it includes certain types of profession or vocation. The scheme of the Act	 as compared to that of the Income tax Act	 will have to be considered presently	 but it is enough to point out that the connotation of the term " business " under the Act	 is wider than that of the same term under the Income tax Act. The learned Chief Justice set aside	 from his consideration	 the provisions of the main clause of section 2(5)	 and did not indicate his reasons for doing so. Ordinarily	 the Court has first to consider whether the main clause of the defini tion of the term " business "	 would govern the facts of the case. The	 question of the application of the first proviso	 which	 it is common ground	 is in the nature of an additional provision which brings within its ambit certain types of income (to use a neutral term) which would not otherwise have come within the terms of the main clause of the definition	 can arise only if the Court first comes to the conclusion that the main clause of the definition is out of the way. I will 670 assume that the holding of investments or other pro property	 is not the whole or main business of the Respondent Company. That assumption will put aside the first proviso aforesaid	 but that does not by itself lead to the inference that the main provision of the definition clause	 cannot be applied to the respondent. An argument on these lines was advanced	 and was repelled by Lord Greene	 M. R.	 in the case of Commissioners of Inland Revenue vs Desoutter Bros.	 Ltd. (1). In that case	 sub section (4) of section 12 of the Finance (No. 	 which deals with Excess Profits Tax	 was under consideration by the Court of Appeal. The learned Master of Rolls considered the question	 and made the following observations which apply with full force to the arguments which found favour 	in the High Court: "The first argument is based on the language of Section 12(4) of the Finance (No. 	 which deals with Excess Profits Tax. The first Sub section speaks of the profits I arising in any chargeable accounting period from any trade or business to which this section applies '. It is in respect of those profits that the tax is exigible. It will be observed that the language only extends to the profits arising from I any trade or business '. Sub section (4) says I Where the functions of a company or society incorporated by or under any enactment consist wholly or mainly in the holding of investments or other property	 the holding of the investments or property shall be deemed for the purpose of this section to be a business carried on by the company or society " I should have thought that the objects of that Sub section were manifest. In my view it was intended	 and quite clearly intended	 to bring into the net a type of corporation which otherwise would or might have escaped it. The commonest type of corporation with which the Sub section is dealing is what may be called a trust investment company	 whose business is the holding of investments and deriving income from them. Such a corporation would not be said to be carrying on a 'trade or business ' within the meaning of (1) 	 160. 671 Sub section (1). Anyhow	 if it were not absolutely clear	 Sub section (4) makes it quite certain that type of corporation is to be included	 and its operations are to be regarded as the carrying on of a trade or business. That seems to me to be the real and sole object of Sub section (4)." " The argument really amounted to this: by implication the profits from investments or property held by any other type of corporation is excluded. I cannot begin to see the shadow of a foundation for any such argument. In my opinion it breaks down completely once the real significance of Sub section (4) is appreciated. " I respectfully adopt the reasoning and the conclusion arrived at by the Court of Appeal	 extracted above. It follows that the first proviso to section 2(5) does not determine the controversy arising in this case. This conclusion completely displaces the ratio of the opinion of the High Court	 but it does not answer the question referred to it. It has	 therefore	 to be considered whether the main definition clause in section 2(5) can come into	 play in giving the answer to the question referred for the opinion of the High Court. The term " business " is a word of very wide	 though by no means determinate	 scope. It has rightly been observed in judicial decisions of high authority that it is neither practicable nor desirable to make any attempt at de limiting the ambit of its connotation. Each case has to be determined with reference to the particular kind of activity and occupation of the person concerned. Though ordinarily " business " implies a continuous activity in carrying on a particular trade or avocation	 it may also include an activity which may be called I quiescent '. This is illustrated by the case which went up to the House of Lords in The Commissioners of Inland Revenue vs The South Behar Railway Co.	 Ltd. (1). In that case	 the facts were these. Dowri to 1906	 the South Behar Railway was held by the Res pondent Company and worked by another Company on behalf of the Secretary of State for India	 the Respondent Company being entitled to a share in the (1) 672 profits in consideration of its having supplied funds and materials for the construction of the Railway. In 1906	 the Respondent Company relinquished possession of the Railway to the Secretary of State	 on the stipulation that until the option to purchase was exercised	 a fixed annuity of pound 30	000 should be paid to the Company in lieu of the share of profits so far paid. After that arrangement in 1906	 the Company did nothing but receive and distribute the said annuity to its share holders. It was held by the House of Lords that the Company was carrying on a trade or business	 and was	 therefore	 liable to Corporation Profits Tax. The House of Lords	 while affirming the decision of the Court of Appeal	 observed that the finding of the Commissioners	 which was reversed by the Court of Appeal.	 was not a finding of pure fact	 but was an inference of law	 derived from the specific facts found in the case	 and that	 consequently	 the decision was open to review. The House of Lords	 in upholding the decision of the Court of Appeal	 observed that by the agreement of 1906	 the Company 's income	 which previously was a fluctuating income derived from the share of the profits	 had been converted into a fixed annuity irrespective of the earnings of the Railway; and that the new arrangement did not materially affect the position of the Company as a business concern. The House of Lords approved of the decision in the case of the Commissioners of Inland Revenue vs The Korean Syndicate	 Ltd. (1). In that case	 a Syndicate was registered in 1905 as a Company for the purposes of acquiring and working concessions and turning them to account	 and of investing and dealing with any moneys not immediately required. In 1905	 the Syndicate acquired part of a right to a concession in Korea	 which included a gold mine	 but in 1908	 it assigned its rights to another Company under an agreement of lease in consideration of certain royalties	 but which were really a percentage of the profits in working the property. In 1911	 the Syndicate placed in deposit at a bank	 certain sums of money received from the sale of shares which had (1) 673 been obtained by the Syndicate in exchange for other shares. During the relevant period	 the Syndicate 's activities were confined to receiving bank interest and royalties and distributing that income amongst its shareholders. Rowlatt	 J. held that the Company was not carrying on a business. On appeal	 it was held that the Syndicate was carrying on a business	 and that the profits derived therefrom	 were liable to Excess Profits Tax. In order to ascertain the business of a Company	 its Memorandum has to be looked into. The Memorandum provides the key to what the business objects of the Company are	 and it has further to be ascertained whether those objects are still being pursued. In the present case	 the relevant clauses of the Memorandum of Association	 have been set out	 and there cannot be the least doubt that the managing of property and realisation of rents therefrom	 was within the objects of the Company	 if it found it necessary and convenient for carrying on its business. It may be that this line of business activity may not be the main part of its business	 but even so	 if reali sation of rent is one of the sources of business income to the Company	 it has got to be included in the computation of its profits for the purposes of the Act. This becomes clear on a reference to sub r. (4) of r. 4	 quoted above. But it has been contended that the words " wholly or partly " in the Rule	 are in excess of the provisions of section 2(5)	 where	 in tile first proviso	 the words are " wholly or mainly ". The suggestion is that the rule	 in so far as it substituted " Partly " for It mainly "	 is in excess of the provisions of the statute. In my opinion	 this argument is based on an assumption which is not well founded. As will presently appear from an examination and comparison of the provisions of the Act and the lncome tax Act	 r. 4(4) does not necessarily derive its operative force from the first proviso to the main clause of the definition in section 2(5). The proviso	 as already observed	 is limited to an incorporated body of a particular type	 and has reference to the " holding of investments or other property ". Rule 4(4) is of a more general application to 85 674 a " business which consists wholly or partly in the letting out of property on hire ". In the rule	 a reference to section 9 of the Indian Income tax Act	 also makes it clear that the rule is concerned with " property ". It is also clear that the basis for taxation of property under section 9 of the Income tax Act	 is different from the basis of taxation under the Act	 in respect of income from property	 and the latter is irrespective of whether income from property has been the subject matter of charge under the Income tax Act. In this connection	 a reference to the second proviso is also relevant in so far as it implies that a person may carry on businesses of different kinds	 and all those different lines of business have	 for the purposes of the Act	 to be treated as one business. Thus	 the Bank may be carrying on the business of holding deposits	 securities and property	 as also lending money on different kinds of securities. Its income from all those activities	 would have to be taken into account in order to determine its total business profits. A similar question arose in the case of Punjab Co operative Bank	 Ltd. vs Commissioner of Income tax	 Punjab (1)	 which went up to the Judicial Committee of the Privy Council. In that case	 the question arose whether the realisation of higher values by sale and purchase of shares and securities by the Bank	 could be said to be business profits	 and thus	 taxable	 under the Indian In.	 come tax Act. On behalf of the Bank	 it had been contended throughout	 without success	 that the realisation of higher values by the sale of shares and securities	 was not a separate business of the Bank	 but was in the way of its business as a banking corporation which had to deal with money and credit	 and that the Bank had always to have in its hands	 cash and easily realisable securities to meet any probable demands by its depositors. But it had been found as a fact that the Bank had been selling shares and secu rities not only for the purpose aforesaid	 but also for augmenting its reserve funds. It was held by the Judicial Committee that it had been rightly decided by the Department and by the High Court	 on a (I) ; 675 reference	 that the purchase and sale of shares and securities were a part of the banking business of the Company	 and the profits	 thus	 realised were liable to income tax. Their Lordships of the Judicial Committee also observed that it was not necessary to establish that the Bank had been carrying on a separate business of buying and selling shares and investments in order to make profits thus made taxable. Once it is found that such transactions were entered into by the Bank not merely with a view to realisation or change of investments	 but with a view to carrying on a business in the sense of earning profits	 the Bank was really carrying on a business within the meaning of the Income tax Act. Following this decision of the Privy Council	 this Court decided in the case of Sardar Indra Singh and Sons Ltd. vs Commissioner of Income tax	 West Bengal (1) that the question whether a certain income is profit from business and not an appreciation of capital arising from a change of investment	 depends Upon the answer to the further question whether that income was so connected with the carrying on of the assessee 's business that it could fairly be said that it is the profits and gains of the business in its normal working. It was not necessary further to show that the income had resulted from a course of dealing which	 by itself	 would amount to the carrying on of a business. In that case	 the assessee company had	 as one of its objects to carry on the business of financiers	 and to purchase and sell stock	 shares	 business concerns and other undertakings. In carrying out that objective	 the company held a large number of shares in other companies	 and was realising its holdings and acquiring new shares. In the background of those facts	 it was held by a Bench of five Judges of this Court	 that the profits made from the sale of investments and the making of fresh investments	 were assessable to income tax. In the course of his judgment	 Patanjali Sastri	 C. J.	 speaking for the Court	 made the following very pertinent observations:		 The principle applicable in all such cases is well (1) ; 	 170	171. 676 settled and the question always is whether the sales which produced the surplus were so connected with the carrying on of the assessee 's business that it could fairly be said that the surplus is the profits and gains of such business. It is not necessary that the surplus Should have resulted from such a course of dealing in securities as by itself would amount to the carrying on of a business of buying and selling securities. It would be enough if such sales were effected in the usual course of carrying on the business or	 in the words used by the Privy Council in Punjab Co operative Bank Ltd. vs Income Tax Commissioner	 Lahore (1)	 if the realisation of securities is a normal step in carrying on the assessee 's business. Though that case arose out of the assessment of a banking business	 the test is one of general application in determining whether the surplus arising out of such transactions is a capital receipt or a trading profit. " But the learned counsel for the Respondent Bank argued that in the present case	 the earning of rental income by the Bank could not come within section 10 of the Income tax Act	 and the definition of " business " in the Act and in the Income tax Act	 in so far as they are relevant to the present case	 must be the same. In other words	 it was contended that as realisation of rents from house property of the Bank	 could not come within the purview of section 10 of the Income tax Act	 it could not also come within the purview of the Act we are now concerned with. In my opinion	 there is a fallacy in this argument. The scheme of the two Acts is not the same. The Income tax Act has brought within its taxing ambit	 not only income from what is ordinarily called business	 but income from several other sources. Sections 3 and 4 of the Income tax Act render liable to tax " all income	 profits and gains from whatever source derived "	 and section 6 of the Income tax Act	 classifies the different heads of income	 profits and gains into (1) salaries	 and the manner of charging the same is laid down in section 7 ; (2) interest on securities	 and the manner of charging the tax is laid down in section 8 (3) income. from property	 to be taxed in (1) ; 67 accordance with the provisions of section 9; and (4) profits and gains from business	 profession or avocation	 to be taxed in accordance with the provisions of section 10. The fifth and the sixth heads of income may be omitted from the present discussion. On the other band	 under the Act in question	 only tax on excess profits	 arising out of certain businesses	 has been imposed. The Act is not concerned with all kinds of income	 but only with profits if made beyond a certain standard laid down under the Act	 from business described in section 5. Under the Act	 the ambit of the term " business " covers the fourth head	 though not the whole of it	 as also the second and the third heads	 set out above	 again though not	 perhaps	 the whole of them. It is not	 therefore	 correct to say that what would not come within the ambit of section 10 of the Income tax Act	 would also not come within the ambit of the Act. On a proper construction of the provisions of the Act	 it has got to be held that what has been covered by sections 8	 9 and 10	 at least in parts	 of the Income tax Act	 comes within the purview of the Act. This is not intended to be a complete statement of the comparative ambits of the two Acts	 but it is enough to dispose of the argument that business	 as understood tinder the Act	 is completely covered by the provisions of section 10 of the Income tax Act. In this connection	 another argument advanced by the learned counsel for the respondent	 as an additional reason for not treating rental income as Coming within the purview of the Act	 may now be considered. It was argued that the first proviso to section 2(5)	 set out above	 would become redundant if rental income were to be covered by the main clause of the definition. This argument again ignores some of the crucial words of the proviso. It speaks only of " holding of investments or other property "	 which is not the same thing as dealing with shares	 investments or other property. This proviso was	 perhaps	 inserted out of abundant caution to repel arguments	 like those advanced in the case of The Commissioners of Inland Revenue vs The Tyre Investment Trust Ltd. (1) In that case	 the Respondent Company was incorporated in 1917	 with the (I) 678 main objects of acquiring and holding shares	 etc.	 and was formed mainly with a view to acquiring shares in two foreign companies and selling them to an English Company which was likely to be interested in them. After the Respondent Company had purchased the shares	 it took an active interest in the affairs of those two companies	 and in 1920	 negotiations were proceeding for the sale of those shares. The Company was assessed to Excess Profits Duty. On appeal	 the Special Commissioners accepted the argument on behalf of the Company that it was not carrying on a trade or business within the meaning of the taxing statute	 and that it was only a holding company and stood in the same position as an individual who had acquired and held investments. On appeal by the Revenue	 it was held in the King 's Bench Division that the principal business of the Company consisted of making investments	 and was	 therefore	 liable to Excess Profits Duty. In support of the second branch of his argument that rental income was not included in " business "	 the learned counsel for the respondent called our attention to the decision of this Court in The United Commercial Bank Ltd.	 Calcutta vs The Commissioner of Income tax	 West Bengal	 (1) with special reference to the observations at p. 97 to the effect that various heads of income	 profits and gains	 under the Income tax Act	 must be held to be mutually exclusive	 each head having been meant to cover income from a particular source. The case before their Lordships was concerned with the question of set off of the carried over loss of the previous year. That case was not in any way concerned with the provisions of the statute now before us. It was concerned only with the scheme of the Income tax Act	 with particular reference to the classification of income into different heads. That case does not throw any light on the interpretation of the term " business ". In view of the considerations set forth above	 it must be held that the realisation of rental income by the assessee Bank	 was in the course of its business in (1) ; 679 prosecution of one of the objects in its Memorandum it was	 therefore	 liable to be included in its business profits	 and thus	 was assessable to Excess Profits Tax. The appeal must	 therefore	 be allowed with costs here and below. KAPUR	 J. I have read the judgment prepared by my learned brother Sinha	 J.	 but I respectfully disagree with it and my reasons are these: The sole question for decision is whether a sum of Rs. 86	000/ received by the respondent during the chargeable accounting period ending March 31	 1946	 as rent of its building at Calcutta can be included in the profits of its business for the purposes of Excess Profits Tax. The respondent the assessee was a banking company which at one time did considerable banking business but it has gone into liquidation. it owned a six storeyed building in a commercial locality of Calcutta. During the relevant period it was occupying the ground floor and a portion of the sixth floor and had let out the rest to tenants for which it received the sum of Rs. 86	000/ as rent	 which is the amount Dow in controversy The liability of this sum to Excess Profits Tax depends upon the interpretation of the relevant provisions of the Excess Profits Tax Act Act XV of 1940) (which for the sake of brevity will hereinafter be termed the Act). The object of the Act was to impose a tax on excess profits which as the very name implies must have reference to and be the result of a business activity. Such profits for the purposes of the Act were to be computed in the manner provided by the Act. The scheme of the Act is as follows: Section 2 is the definition section ; section 4 the charging section and section 5 deals with the application of the Act. Section 6 is a provision for determining standard profits and their computation. Excess Profits Tax was chargeable on the excess of profits during the chargeable accounting period over the standard profits	 i.e.	 profits during the standard period. Section 5 of the Act provides: This Act shall apply to every business of which 680 any part of the profits made during the chargeable accounting period is chargeable to income tax by virtue of the provisions of sub clause (i) or sub clause (ii) of clause (b) of sub section (1) of section 4 of the Indian Income tax Act 1922. . . " The charging section under the Act is section 4	 the relevant portion of which is: "Charge of tax: (1) Subject to the provisions of this Act	 there shall	 in respect of any business to which this Act applies	 be charged	 levied and paid on the amount by which the profits during any chargeable accounting period exceed the standard profits. . Thus the Act applies to every business	 any part of the profits of which are chargeable to income tax (section 5) and in respect of any business to which the Act is applicable	 excess profits tax shall be chargeable on the amount by which the profits during the charge. able accounting period exceed the profits during the standard period (section 4). It is in respect of those profits that the tax is exigible. In order to determine whether income received during a chargeable accounting period is for the purposes of the Act " profits " arising out of " Business " or not it becomes necessary to examine what these words	 i.e.	 " Business " and " profits " mean. Section 2(5) of the Act defined " Business " as follows: " Business ' includes any trade	 commerce or manufacture or any adventure in the nature of trade	 commerce or manufacture or any profession or vocation	 but does not include a profession carried on by an individual or by individuals in partnership if the profits of the profession depend wholly or mainly on his or their personal qualifications unless such profession consists wholly or mainly in the making of contracts on behalf of other persons or the giving to other persons of advice of a commercial nature in connection with the making of contracts: Provided that where the functions of a company or of a society incorporated by or under any enactment consists wholly or mainly in the holding of investments or other property	 the holding of the investments or property shall be deemed for the purpose of 681 this definition to be a business carried on by such company or society: Provided further that all business to which this Act applies carried on by the same person shall be treated as one business for the purposes of this Act ". The definition of " business " in the main section	 i.e.	 section 2(5) is analogous to the definition of " business " as given in section 2(4) of the Income Tax Act; but proviso (1) to section 2(5) of the Act enlarges the scope of the word " business" in the case of companies and societies incorporated under any enactment. The " words " deemed to be ". make something " business which otherwise it would not have been. In the case of an incorporated company therefore business under tile Act is not merely any trade	 commerce or manufacture or any adventure in the nature of trade	 commerce or manufacture but also that which is deemed to be business under proviso (1) which makes the holding of investments or other property by an incorporated Society or company business if one of the following two conditions is fulfilled	 e.g.	 (1) If its functions consist wholly or mainly in the holding of investments; or (2) If its functions consist wholly or mainly in the holding of other property. It is manifest from this that in the absence of the proviso (1) to section 2(5) of the Act the word " business " would comprise no function beyond what it comprises under the Income Tax Act and. such functions as the holding of investments or the holding of other property would escape the operation of the Act. The heads of income falling under section 6 (ii)	 6 (iii) and 6 (v) of the Income Tax Act	 i.e.	 of interest on securities	 and income from property and income from other sources are not business in the Income tax Act and would not be business within the Act. This Court in United Commercial Bank Ltd. vs Commissioner of Income tax (1) held that the heads of income mentioned in section 6 of the Income tax Act are mutually exclusive	 each head being specific to cover the item (1) [1958]S.C.R. 79. 86 682 arising from a particular source and therefore even if securities are held as trading assets or dealt with in the course of a business by a banker or a dealer in securities the interest must be charged and computed under the head " Interest on securities" under section 8 of the Income tax Act and not as business profits under section 10 of that Act. This wider connotation of the word " business" in the Act was clearly intended to bring within its net those incorporated societies and companies which otherwise would or might have escaped it. One such company would be a trust investment company whose business is the holding of investments and getting profit therefrom. Such a company cannot be said to be carrying on business	 i.e.	 any trade	 commerce or manufacture within the meaning of the main provision	 i.e.	 section 2(5) but it is the proviso which makes it clear that type of a	 company is included and its operations are to be regarded as carrying on of 'a " business ". See also COmmissioners of Inland Revenue vs Desoutter Bros.	 Ltd. (1). Another such company or society would be a housing society or company which owns houses for the purpose of letting on rent. Such a company or society also cannot be said to be carrying on business within the definition in the main sub section (5) of section 2. Under proviso (1) however that class of company or society would also be deemed to be carrying on " business ". In both these cases their profits would be chargeable to excess profits tax. The word " profits " in section 2(19) of the Act means 		profits as determined in accordance with the First Schedule" which provides the method of computation of" profits"	 Rule 4 of this Schedule deals with income from investments and is as follows: "(SEE SECTION 2(19) ) Rules for the computation of profits for purposes of Excess Profits Tax 1. . . . . 2. . . . . 3. . . . . 4.(1) 	Income received from investments shall be included in the profits in the cases and to the (1) 	 160. 683 extent provided in sub rules (2)	 (2A) and (4) of this rule and not otherwise. In the case of the business of a building society	 or of a money lendidg business	 banking business	 insurance business or business consisting wholly or mainly in the dealing in or holding of investments	 the profits shall include all income received from investments	 whether or not such income is included in the profits charged under section 10 of the Indian Income Tax Act	 1922	 or is charged under any other section of that Act	 or has been subjected to deduction of tax at source or is free of or exempt from income tax ". In the case of a business part of which consists in banking	 insurance or dealing in investments	 not being a business to which sub rule (2) of this rule applies	 the profits shall include all income received from investments held for the purpose of that part of the business	 being income to which the persons carrying on the business are beneficially entitled ". Sub rule (1) deals with business which consists wholly or mainly in the dealing in or holding of investments in the case of various kinds of companies mentioned and sub rule (2A) deals inter alia with banking business. The respondent being a banking company its business essentially consists in dealing with money and credit. Such a company has always to keep cash or realizable securities and other realisable investments in order to meet withdrawals by depositors and the holding of such securities and other investments would be the holding of " investments " and that is its normal and main activity. Punjab Co operative Bank Ltd. vs Commissioner of Income tax	 Punjab (1). See also section 277F of the Indian Companies Act which is now a part of the Banking Companies Act. Therefore the respondent qua the holding of investments of this kind	 was carrying on business under proviso (1) to section 2(5) of the Act but it is not that kind of business which is the subject matter of controversy in this appeal. What we have to decide is was the income received as rents from the portion of the respondents ' (1) 684 Calcutta building which was not required by the respondent for its own purposes and let out on hire profit within section 2(19) and chargeable under section 4 of the Act. Two arguments were addressed in favour of the contention that such income was profits of business within the Act: (1) that the laying out of money in a multi storeyed building was itself an investment and (2) that even if the business consisted partly in letting out of property the income from that property was profit within the Act. In support of the first submission it was argued that one of the objects in Memorandum of Association was the acquisition of immoveable property which the company may think convenient for the purpose of its business and therefore the construction of a multistoreyed building would itself be an investment. Reference was made to cl. (e) of the Memorandum of Association which relates to acquisition of moveable and immoveable property. This clause is as follows:" (e) To purchase	 take on lease or in exchange or otherwise acquire any moveable or immoveable property. . . . which the Company may think necessary or convenient for the purpose of its business	 and to construct	 maintain and alter any building or works necessary or convenient for the purpose of the Company ". Now this argument loses sight of the fact that the Legislature has chosen to use two words " investments " and " other property " with a disjunctive " or " in between. To both these words a meaning must be assigned because it cannot be said that one or the other of them is redundant or they mean the same thing. "Investments" has been defined thus: " something acquired as a result of laying out money is an investment: Commissioners of Inland Revenue vs ' Rolls Royce Ltd. (1) but this general test as a test was not accepted in a later case	 Commissioners of Inland Revenue vs Desoutter Bros. Ltd. (2) at p. 161 where Lord Greene said: " Speaking for myself	 I am always disinclined to (I) (2) 	 160. 685 accept any general definition or test for the purpose of solving this type of question. The question whether or not a particular piece of income is income received from an investment must	 in my view	 be decided on the facts of the case". In every case the facts have to be ascertained and then the question can be determined. whether the profits arising from a particular function are business profits within the Act or not. As above stated the essential function of a banking company consists in money and credit and to carry on such functions it has to hold investments which under the Income tax Act would fall under sections 8 and 12. See also section 277F of the Companies Act of 1913 which is now incorporated in the Banking Companies Act. Property is a word of wide connotation and ' includes moveable and immoveable properties	 all interests therein and even investments would fall within that word but in the context it would not comprise " investments ". If a Banking Company as in the present case constructs a multi storeyed building used a part of it and lets out the rest it cannot be said 'to carry on " business " unless its main function is the holding of property and we have already seen that the main function of a Banking Company is dealing in money or credit and for that purpose it holds investments in the form of easily realisable securities. Merely because for the carrying out of its functions a Banking Company constructs a building its functions will not change from that of a Banking Company into one of a company engaged in the letting out of property on hire. As the Excess Profits Tax is a taxing measure and the object of the Act also is to tax excess profits it is reasonable to say that the words " investment " and " property " as used in the case of a Banking Company are used. in the same sense as they are used in the Income tax Act but if their holding by the company is its sole or main function then they will be deemed to be business so as to make the income derived therefrom chargeable to excess profits tax even if otherwise they 686 would not have been so chargeable. The two enactments are in pari materia and are intended to charge tax on income	 profits and gains only the Act is confined to " profits " of " business" as therein defined and income tax is chargeable on all incomes	 profits and gains. If the mere owning of immoveable property and letting out that portion which was not needed for its own use by a company was intended to be covered by the definition then the use of the word wholly or mainly would be wholly redundant. In construing the proviso effect has to be given to every word used. The word " functions " is defined in the dictionary to mean " activities appropriate to any business" ' and if that is substituted in the proviso to section 2(5) it would read " where the activities appropriate to any business. . consist wholly or mainly in the holding Of investments or other property ". So read	 can it be said that the activities appropriate to the business of a banking company consists wholly or mainly in the holding of a multi storeyed building or such other property for the purpose of letting out the unused portion on hire. Obvious answer to this question would be in the negative. It is manifest that rents received from the multi storeyed property are not income received from a " business " within the Act. It is not a trading receipt in the case of banking company. Under the Income tax Act it falls under section 9 and there is nothing to indicate in the definition of the word " business " as given in the main portion of section 2(5) of the Act that it has a different complexion there. In the case of hotel proprietors it has been held that compensation paid by the Crown for requisitioning	 during the war	 of hotel premises is not its trading profits. Salisbury House Estate Ltd. vs Fry (1) ; Mellows vs Buxton Palace Hotel Ltd. (2 ). Even under the enactment imposing Profits Tax corresponding to our Excess Profits Tax it was held not to be income receivable from "investments or other property". Commissioners of Inland Revenue vs Buxton palace Hotel Ltd. (3). (1) (I 930) ; (2) (3) 333. 687 But it was urged that sub r. (4) of r. 4 of Schedule I lays down a different method of computation and qualifies the qualities of a business when it relates to holding of property. Sub rule (4) of r. 4 is as follows: " In the case of a business which consists wholly or partly in the letting out of property on hire	 the income from the property shall be included in the profits of the business whether or not it has been charged to income tax under section 9 of the Indian Income tax Act	 1922	 or under any other section of that Act". But before this rule becomes applicable the functions of the company have to fall within the definition of " Business " as given in the Act. The definition Schedule I is confined to computing of profits and has relation to section 2(19) wherein it is mentioned. It cannot be used to affect the quality of the word " business " as used in the Act. It only means that when the functions of a company	 i. e.	 " the activities appropriate to any business " consist wholly or mainly in the holding of " other property " then in the case of that portion of the business which wholly or partly consists in the letting of property for hire the income from the property shall be included in " profits " in spite of the fact that the income has been assessed under section 9 of the Income Tax Act. It is a far step from saying that the definition of " business " has been modified by sub r. (4) of r. 4. It relates to a business of letting out of property. The word " business " can either mean what is contained in the main provision in section 2 (5) or the extended meaning given by the first proviso of that section. In either case it is inapplicable to the case of the respondent. It cannot be said that letting out of property is either wholly or even partly " business of the respondent. In my view the income received from rents of the portion of the building let out on hire	 i. e.	 Rs. 86	000/ 	 does not fall within the word " profits " as used in the Act and is not chargeable to Excess Profits Tax. The judgment of the High Court is therefore sound and I would dismiss this appeal with costs. 688 HIDAYATULLAH	 J. I have had the advantage of reading the judgments of my learned brothers	 Sinha and Kapur	 JJ. I agree with Sinha	 J.	 that the appeal must be allowed with costs here and below. The question which was referred for the opinion of the Calcutta High Court was whether in this case rental income from immovable property was part of the business income taxable under section 2(5) read with r. 4 (4) of Sch. I attached to the Excess Profits Tax Act	 1940. In my opinion	 the question must be answered in the affirmative for the following reasons. The Calcutta National Bank	 Ltd. (in liquidation) hereinafter called the Bank	 was doing business as a	 bank prior to going into liquidation. Its income	 it appears	 was also subject to excess profits tax in the past	 and we are concerned in the present case with the chargeable accounting period ending March 31	 1946. The Bank had constructed a six storeyed building	 of which it occupied the ground and the top floors. The rest of it was rented out	 and in the chargeable accounting period	 rents totaling Rs. 86	000/ were received by the Bank. The question was	 as already stated	 whether this rental income was chargeable to excess profits tax under the Act. According to Kapur	 J. the renting out of a building was not the business of the Bank within the definition of 'business. ' in the Act. This income	 therefore	 was not properly assessable to excess profits tax. Sinha	 J.holds the contrary view. Under the Act	 the charge of tax. is laid on any business to which the Act applies. The Act does not define I business ' exhaustively	 but shows what may be included in it. The definition follows to a point the definition given in the Indian Income tax Act	 but by a proviso which enlarges its scope	 provides as follows: " Provided that where the functions of a company or of a society incorporated by or under any enactment consist wholly or mainly in the holding of investments or other property	 the holding of the investments or property shall be deemed ?or the purpose of this definition to be a business carried on by such company or society." 689 The charging section is section 4	 and it	 shortly	 provides that the charge is laid on the amount by which the profits in a chargeable accounting period exceed the standard profits of a business. According to another definition	 "I profits " mean profits as determined in accordance with the First Schedule of the Act. In the schedule which is enacted as part of the Act	 r. 4 (4)	 to which reference has been made in the question	 reads as follows: " In the case of a business which consists wholly or partly in the letting out of property on hire	 the income from the property shall be included in the profits of the business whether or not it has been charged to income tax under section 9 of the Indian Income tax Act	 1922	 or under any other section of that Act. " The difference between the definition of I business ' and the rule above quoted is that while the former mentions that the business must be wholly or mainly holding of investments or other property	 the rule says that if the business consists wholly or partly of letting out of property	 the income of the property shall be included in the profits. Kapur	 J.	 is of the opinion that the business of the Bank being quite different	 the rule cannot be made applicable	 because the definition requires that the assessee 's business should be wholly or mainly the holding of investments or other property. He also thinks that there is neither holding of an investment nor of property as investment. The definition of the term I business ' in the Act is helpful where it applies	 but not being an exhaustive one. 	 it cannot shut out something which can be appropriately described as a business. Even the opening words of the definition show that it is meant to cover most of the activities designed to produce income or profits or gain. Under the Memorandum of Association	 the Bank can acquire property	 just as it acquires investments for purposes of its business and even otherwise. Clause (e) enables the Bank to purchase	 take on lease or in exchange or otherwise acquire any moveable or immoveable property	 which the Bank 87 690 may consider necessary or convenient for the purpose of its business and to construct	 maintain and alter any buildings or works necessary or convenient for the purpose of the Bank. The acquisition of a sixstoreyed building was	 therefore	 within the terms of the Memorandum	 and the only question is whether the income from such building	 if rented out	 can be taken as profits of the Bank for purposes of excess profits tax. The definition mentions the holding of investments or other property	 and the words " other property " must necessarily take their colour from what precedes	 that is to say	 " investments ". The holding of other property must itself be investment for earning profits; otherwise	 the definition does not apply. The word I investments ' is a word of large import. In one sense	 every mode of application of one 's money intended to yield a return by way of interest	 income or profit is investment. When the Bank builds a building more than necessary to house itself and with a desire to earning rents from it	 it cannot but be stated that the building was constructed as an investment	 or in other words	 the Bank was holding " other property " within the meaning of the definition	 in addition to the investments which it is the normal business of the Bank to hold. In my opinion	 the income from the property would be regarded as profits from property held as investment	 and the profits will have to be calculated	 as laid down in Sch. 1	 r. 4(4). The only difficulty is in the change of language between the definition and the rule	 inasmuch as the former speaks of the business which is wholly or mainly the holding of investments or other property	 and the latter speaks of a part of the business being the letting out of property. Kapur	 J.	 is of the view that the section defining the word I business ' must prevail	 because the Schedule is enacted. only for the purpose of computing the profits	 as laid down in the definition and as the heading f the Schedule shows. That there is a difference between the Schedule and the Act is not to be denied	 and the question that naturally falls for consideration is whether the 691 Schedule should be given effect to independently in the circumstances of the case. The Schedule really tends ' for the purposes of collection	 to widen the definition of a business to include any letting of property for earning rents. The rule to be applied was stated by Lord Sterndale	 M. R.	 in Inland Revenue Commissioners vs Gittus (1) in the following words: " It seems to me there are two principles or rules of interpretation which ought to be applied to the combination of Act and schedule. If the Act says that the schedule is to be used for a certain purpose and the heading of the part of the schedule in question shows that it is prima facie at any rate devoted to that purpose	 then you must read the Act and the schedule as though the schedule were operating for that purpose	 and if you can satisfy the language of the section without extending it beyond that purpose you ought to do it. But if in spite of that you find in the language of the schedule words and terms that go clearly outside that purpose	 then you must give effect to them and you must not consider them as limited by the heading of that part of the schedule or by the purpose mentioned in the Act for which the schedule is prima facie to be used. You cannot refuse to give effect to clear words simply because ' prima facie they seem to be limited by the heading of the schedule and the definition of the purpose of the schedule contained in the Act. " In my opinion	 the second of the. two propositions laid down by Lord Sterndale	 M. R.	 applies to the exposition of the Schedule	 with which we are concerned. It may be pointed out that the decision of Lord Sterndale	 M. R.	 was accepted by the House of Lords without question in Gittus vs Commissioners of Inland Revenue(1) in an appeal from the decision of the Court of Appeal in the earlier case. Though the heading of the Schedule and the definition of the word 'profits ' show that the Schedule is designed to assist in the computation of profits	 the mention of other kinds of businesses in r. 4	 taken with an incomplete definition of the term in the Act	 clearly (I) 576. (2) 692 shows that the legislature was defining the term business ' as and when necessary	 as it laid down the rules for calculation of profits of a business. It was including different kinds of businesses within the Act and indicating how in those cases the profits had to be calculated. I do not think that the definition given in the Act can be said to control everything in the Schedule	 in spite of the definition of I profits ' and the heading given to the Schedule. As I have said above	 the second of the two alternatives is really applicable to the present case. For these reasons and those given by my brother	 Sinha	 J.	 I hold that this appeal should be allowed with costs here and below. BY THE COURT. In accordance with the judgment of the majority	 the decision under appeal is set aside and the appeal is allowed with costs here and below.

The respondent was a banking company and the question was whether it was liable to pay excess profits tax on a sum of Rs. 86	000 received by it as rent in respect of the major part of a six storeyed building owned and constructed by it	 which it had let out	 the rest being occupied by its headquarters in Calcutta. The Department and the Income tax Appellate Tribunal found against the respondent but the High Court	 on a reference under section 66(1) of the Income Tax Act	 reversed their decision. The Memorandum of Association of the Company provided as one of its objects as follows	 " (e) To purchase	 take on lease or in exchange or otherwise acquire any moveable or immoveable property. . . . which the company may think necessary or convenient for the purpose of its business	 and to construct	 maintain and alter any buildings or works necessary or convenient for the purpose of the Company. " The question referred to the High Court for decision wag whether the said income was part of the business income taxable under section 2(5) read with r. 4(4) of the Sch. I to the Excess Profits Tax Act	 1940. The High Court held that although the income was derived from the holding of property	 since the functions of the assessee company did not consist wholly or mainly in the holding of investments or other property as required by the first proviso to section 2(5) Of the Act	 no question of the application of r. 4(4) could arise. Held	 (Per Sinha and Hidayatullah	 jj.	 Kapur	 J.	 dis senting)	 that the question must be answered in the affirmative. Per SINHA	 J. The High Court was fundamentally in error in overlooking the main provision Of section 2(5) of the Act	 for even though the first proviso might not apply	 that by itself would not render the main provision of the definition	 which was wider than that under the Indian Income tax Act inapplicable. Commissioners of Inland Revenue vs Desoutter Bros. Ltd.	 	 applied. 661 The term 'business ' was of wide import and each case had to be determined with reference to the particular kind of acti vity or occupation of the person concerned. Though	 ordinarily it implied a continuous activity in carrying on a particular trade or avocation	 it might also include an activity which might be called ' quiescent '. The Commissioners of Inland Revenue vs The South Behar Railway Co.	 Ltd.	 and Commissioners of Inland Revenue vs The Korean Syndicate	 Ltd.	 (1921) 12 T. C. 181	 referred to. The Memorandum of Association of a company provided the key to its business objects and the relevant clause in the instant case clearly showed that the managing of property and realisation of rents therefrom were within the objects of the company	 and	 therefore	 such rents must be included in calculating its profits under r. 4(4) of the Sch. I to the Act. It was not correct to suggest that the rule	 in substituting	 the word " partly " for " mainly " occurring in the first proviso to section 2(5) exceeded the provisions of the statute. Rule 4(4) did not derive its operative force from that proviso	 limited to an incorporated body of a particular type	 and was of wider application as evident from its own terms as also from the second proviso to section 2(5) of the Act. Punjab Co operative Bank Ltd. vs ' Commissioner of Income tax	 Punjab	 ; [1940] 8 I.T.R. 636 and Sardar lndra Singh and Sons	 Ltd. vs Commissioner of Income tax	 West Bengal; 	 	 referred to. It was not correct to say that if rental income were to be covered by the main clause of section 2(5)	 the first proviso to that section would become redundant. Commissioners of Inland Revenue vs The Tyre Investment Trust	 Ltd.	 	 referred to. Nor was it correct to say that " business " could not be said to include rental income. The United Commercial Bank Ltd.	 Calcutta vs The Commis sioner of Income tax	 West Bengal; 	 	 held inapplicable. Per KAPUR	 J. The word 'business ' could either mean what was contained in the main provision of section 2(5) or have the extended meaning given by the first proviso to that section. In either case it was inapplicable to the case of the respondent whose essential function was to deal in money and credit	 letting out of property being neither wholly or even partly its business. The income received by the respondent	 therefore	 by way of rent	 did not fall within the definition of the word 'profits ' contained in section 2(19) of the Act and was not chargeable to excess profits tax under section 4 Of the Act. Salisbury House Estate Ltd. vs Fry	 ; 	 662 Mellows vs Buxton Palace Hotel Ltd.	 and Commissioners of Inland Revenue vs Buxton Palace Hotel Ltd. 	 referred to. In construing the first proviso	 effect must be given to every word used. If the mere owning of immoveable property and the letting out of what was not needed for its own use by a company was intended to be covered by the definition	 the use of the words wholly " or " mainly " would be wholly redundant. Rule 4(4) Of the first Schedule to the Act did not modify the definition of business ' so far as it related to holding of property and before it could apply	 the functions of the company	 which meant the activities appropriate to its business	 must fall within the definition of 'business ' as given in the Act. Per HIDAYATULLAH	 J. The rents realised by the respondent must be regarded as profits from property held as investment and included in the computation of profits under r. 4(4) Of the first schedule. There was undeniably a difference between the wording of the schedule and the Act and the tendency of the schedule was to widen the definition of business so as to include letting of property for earning rents. It could not	 therefore	 be said that the definition contained in the Act	 wholly controlled the Schedule and r. 4(4) must be given effect to. Inland Revenue Commissioners vs Gittus	 (192O) 1 K. B. 563	 applied. Gittus vs Commissioners of Inland Revenue	 	 referred to.