TMI Blog2004 (3) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... der which head he is entitled to exemption of tax - assessee could not show any specific provision under which the assessee could be granted exemption from tax - said receipt of Rs. 30,000 is covered by the definition under section 2(24)(ix) - the same is taxable in the hands of the assessee - - - - - Dated:- 8-3-2004 - Judge(s) : DR. B. C. CHAUHAN., GHANSHYAM DASS. JUDGMENT The judgment of the court was delivered by Ghanshyam Dass J. -By means of this reference under section 256(1) of the Income-tax Act, 1961, the following questions are being referred for the opinion of this court: "1. Whether, on the facts and circumstances of the case, the receipt of Rs. 30,000 being in the nature of prize for caption writing is taxable in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in clause (24) of section 2 of the Income-tax Act, 1961. Viewed in this context it is not under dispute that the assessee put in his skill exertion and effort for participating in the Bombay Dyeing contest and was awarded the prize of Rs. 30,000 for caption writing which was adjudged the best by the Bombay Dyeing authorities. This was, therefore, a receipt or gain arising from effort, skill and exertion by the assessee and was therefore of the nature of income." The appellant then moved an application for reference of the matter to the High Court. In this way this reference came up for hearing before this court. We have heard Sri Vikram Gulati, learned counsel for the assessee, and standing counsel appearing for the Department. Lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n advocate and he had received certain amount on account of fees outstanding for professional work done by him before his elevation and in that case as per majority view the court held: "The receipts were the outstanding dues of professional work done and were clearly the fruits of the assessee's professional activity. They were the profits and gains of a profession and they fell under the fourth head, namely, 'Profits and gains of business, profession or vocation'. They were not however chargeable to tax under that head because under the corresponding computing section, i.e., section 10 of the Income-tax Act, 1922, an income received by an assessee, who kept his accounts on the cash basis, in an accounting year in which the profession ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctory, that the very fact that the assessee agreed to help U in the sale of its shares indicated that the amount received was not a casual receipt or a windfall and hence the transaction constituted an adventure in the nature of trade and the commission received was, therefore, assessable as income. The Tribunal allowed the appeal of the assessee on the grounds that the receipt of Rs. 25,000 by the assessee was a casual and non-recurring receipt as the same did not arise from any business or by the exercise of any profession or occupation, that the assessee's principal source of income was commission received from the group concerns for the sale of their products, that the assessee was not a share-broker nor a speculator nor a promoter of U ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceipts by way of addition to the remuneration of an employee." The words "casual" and "non-recurring" have not been defined in the Act and they must, therefore, receive their plain and ordinary meaning. In the Oxford Universal Dictionary, the word "casual" has been defined as meaning: "(i) subject to or produced by chance; accidental, fortuitous; (ii) coming at uncertain times, not to be calculated on, unsettled . . ." In the context of the statute, "unsettled" seems to be the aptest meaning to be applied in such cases. Starting from the plain dictionary meaning, judicial decisions have attempted to delineate the true significance and scope of these terms. Each case has, however, ultimately turned on its own facts. But the aspect whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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