How far is ownership of a business essential for considering the taxability arising from such business? In case a business is tainted with illegality, can it be said that such income cannot be taxed, in view of the illeg

Ownership of Business: The statement that ownership of business is essential for taxability of Income under the head "Profits and gains of business or profession" is incorrect. It is not essential that to tax the income arising from a business, the assessee must be the owner thereof. Even where the assessee runs a business outsourced to him by the owner, he may be taxed in respect of the profits arising from such business. It is not only the legal ownership, but also the beneficial ownership of the business, which has to be taken into consideration, to judge whether the profits and gains arising from such business is taxable. Taxability of income from Illegal Business: The proposition that "Income from illegal business cannot be taxed" is incorrect. Legality or illegality of the business is immaterial to judge whether the income arising therefrom is taxable as business income. The person doing illegal business is punishable under another Act, is also not relevant in this regard.