JUDGMENT - CHAGLA C. J. :

It is sufficient to state only those facts which are necessary for the disposal of this reference. The assessees are trustees under a scheme framed by the District Court, Ahmedabad, and as such trustees they carry on the business of a dispensary and the business made profits in the relevant assessment years. As trustees they also are possessed of certain property which fetches income and they are also the registered owners of shares which bring in dividend income. The question that arises is whether it is obligatory upon the Department to tax them with regard to these different kinds of income under Ss. 9, 10 and 12 read with S. 41 of the Income-tax Act on it is open to the Department to contend that at its option it could tax the trustees under Ss. 9, 10 and 12 without regard to the provisions of S. 41.

(2) Now, in order to answer this question, we must first look at the scheme of the Act. The charging section, as has been so often pointed out, is S. 3 of the Act. Chapter III and Ss. 6 to 12 deal with computation of income. That chapter lays down various provisions which have to be applied with regard to different kinds of income which have got to be groupe

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