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The amplitude of the expression ‘carries on business’ cannot however be restricted merely because it is used in conjunction with the words ‘personally works for gain.’ The expression is much wider than what the expression in normal parlance connotes, because of the ambit of a civil action within the meaning of s. 9 of the Code, but which of the following necessary conditions should concur?
The agent must be a special agent who attends exclusively to the business of the principal and carries it on in the name of the principal and not a general agent who does business for anyone that pays him
The person acting as agent must be an agent in the strict sense of the term. The manager of a joint Hindu family is an ‘agent’ within the meaning of this condition
To constitute ‘carrying on business’ at a certain place, the essential part of the business must take place in that place
None of these
- Option 1: This condition requires the agent to be exclusively devoted to the principal's business, but it restricts the idea of 'carrying on business' unnecessarily. It's not essential for defining business activities.
- Option 2: This suggests the agent must be strictly defined, including the manager of a joint Hindu family. However, 'agent' in this strict sense is not pivotal for the expression being discussed.
- Option 3: The critical part of business must occur at the specified location. It describes a component of 'carrying on business', but isn't a universal necessity.
- Option 4: None of these: This seems to be correct as none of the specific conditions are universally necessary for the interpretation of 'carries on business'.
By: santosh ProfileResourcesReport error
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