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1975 (9) TMI 53 - SC - Income TaxWhether politics of the socialist brand or otherwise is a profession or occupation? Whether the expenditure incurred by the assessee for the election of candidates set up by him as chairman of his party can be legitimately regarded as incurred " wholly and exclusively " for the purpose of his profession or occupation? Held that:- It is thus clear, without reference to the wealth of case law relied on by the High Court, that politics has been a profession and, indeed, under modern conditions in India, perhaps the most popular and uninhibited occupation with--its perils, of course. Law cannot take leave of realities and, therefore, section 5(a) must bear the construction that politics is a profession or occupation. There is no suggestion nor evidence that any material return was in contemplation when he spent these sums. Being a politically important man with plenty of money and vitally interested in boosting his party's standing in the State, he donated liberally for candidates set up by the party. In this view section 5(j) applies to these donations which earn exemption from the expenditure-tax. Wholly motiveless donation is rare, but material return alone negates a gift or donation. We need not investigate the propriety of political donations " unlimited " and often invisible. All that we need consider is whether such sums are gifts and donations or are non-gratuitous payments with a tag of return. We have no doubt that on the question as framed, and on the facts and circumstances present, these sums were paid purely as gifts and donations to his party by the repondent. It is not surprising either, because he was the chairman of the said party, had a long and liberal purse from which to draw and a large circle of support to build up in the long run. The inevitable conclusion from our discussion is that both the heads of expenditure fall under section 5(j) of the Act and, therefore, flow out of the assessable zone. The High Court's conclusion is sound and the appeal deserves dismissed
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