1965 (11) TMI 33 - SUPREME COURT

Whether on a true interpretation of the deed of agreement dated 2nd January, 1931, appointing the assessee as treasurer of the Allahabad Bank Limited, income earned by the assessee from his activities as such treasurer fell to be computed under section 10 of the Act or section 7 or section 12 of the Income-tax Act?

Held that:- Taking into consideration the nature of the duties performed, and the obligations undertaken, together with the right to remuneration subject to compensation for loss arising to the bank from his own acts and omissions or of the servants introduced by him into the business of the bank, the assessee may be regarded as following a vocation. The remuneration must therefore be computed under section 10 of the Income-tax Act and loss of profit suffered in that vocation in any year may be carried forward to the next year and be set off against the profit of the succeeding year. Appeal dismissed.