TMI Blog1999 (10) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... MENT The judgment of the court was delivered by S. P. BHARUCHA J .---The questions that were the subject-matter of the impugned order of the High Court read thus (see [1980] 124 ITR 347, 365) : "(1) Whether, on the facts and in the circumstances, the Tribunal is justified in law in holding that the income of the assessee became liable to be assessed in the assessment years 1966-67 and 1967-68 and not in the years 1946-47 and 1947-48 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the remuneration received by the assessee from the Kalyanmal Mills Ltd. in the assessment years 1966-67 and 1967-68 pursuant to the final decree passed in favour of the assessee on December 14, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it and the trial court passed a preliminary decree for taking accounts. The same was upheld, with minor modifications, by the High Court. Accounts having been taken, a final decree was passed on December 14, 1965. Pursuant thereto, the assessee was paid Rs. 10,000 between April 1, 1965, and March 30, 1966, and Rs. 65,532 between April 1, 1966, and March 31, 1967. These amounts were brought to tax in the hands of the assessee for the assessment years 1966-67 and 1967-68 respectively. The income-tax authorities and then the Tribunal held that the relationship between the mills and the assessee was that of master and servant and that the said amounts that had been paid to him were taxable under the head "Salary". Arising out of the order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessment years 1946-47 and 1947-48 and they were, by reason of the said clause (a), chargeable to tax in those assessment years, whether paid or not. It is his submission also that the said amounts received by the assessee cannot be termed "arrears of salary", so that clause (c) has no application. According to learned counsel for the Revenue, on the other hand, the said amounts not having been charged to tax in the assessment years 1946-47 and 1947-48, they became liable to tax in the years in which they were paid to the assessee by the mills. Section 15 must be read harmoniously. It is clear that the amounts of salary that were payable by the mills to the assessee in the previous years relevant to the assessment years 1946-47 and 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h could have been charged but were not charged. We do not find it possible to accept the argument. The words used in clause (c) are 'if not charged to income-tax', and appear to us to be wide enough to cover cases where the charge could or could not have been imposed. In the result, we answer the first question in the affirmative and in favour of the Revenue. No answer to the second question is required. The appeals filed by the assessee (C. A. Nos. 1508-09 of 1982) are, therefore, dismissed. The appeals filed by the Revenue (C. A. Nos. 1206-07 of 1982) relate only to the answer against it on the second question and they do not require consideration. Those appeals are, therefore, disposed of. No order as to costs. - - TaxTMI - TMIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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