TMI Blog1995 (2) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... on June 16, 1982, and the amount of Rs. 1,05,000 was considered as a gift out of natural love and affection for which a gift deed dated June 22, 1978, was executed. The Commissioner of Income-tax exercised the power under section 263 of the Income-tax Act and cancelled the assessment order and was of the opinion that the payment has been camouflaged as a gift out of natural love and affection. The real nature of the offerings or present to the Khadim is receipt by the assessee on account of his Khadim profession. It was also found that Abu Sufian was visiting the Dargah since 1966 to pay obeisance at the Dargah and the Jiyarat through Khadim assessee. The services which were rendered by the assessee to Abu Sufian from time to time were considered to be the cause on account of which the payment is made. According to the assessee, Abu Sufian has given an interview to the Hindu Islamic Magazine 'Phukaru' where he stated that a bad debt due to the grace of Allah was recovered and he decided to serve Khadim Abdul Gani Maullim (assessee) by presenting this amount of Rs. 1,05,000. The Commissioner of Income-tax was also of the view that there was nothing existing so far as natural love a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It was observed that voluntary or gratuitous payments which are connected, linked or referable or traceable to the office, vocation or occupation are income. From the standpoint of the person receiving the payments, it accrues to him by virtue of his office, position, though there was no legal obligation on the part of the persons remitting or paying the money to do so. We have considered the arguments of learned counsel for the Revenue. In order to constitute the receipt as income, it is necessary for the Revenue to establish the link between the receipt and the service rendered, i.e., rendering of service was causa causans of the receipt. In Moorhouse (Inspector of Taxes) v. Dooland [1955] 28 ITR 86 (CA), the following principles were deduced on the basis of a number of decisions (at page. 104): " (i) The test of liability to tax on a voluntary payment made to the holder of an office or employment is whether, from the standpoint of the person who receives it, it accrues to him by virtue of his office or employment, or in other words by way of remuneration for his services. (ii) If the recipient's contract of employment entitles him to receive the voluntary payment, whateve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns no doubt played their part in obtaining and increasing the amount of the offerings, but I cannot doubt that they were given to the vicar as vicar and that they formed part of the profits accruing by reason of his office. " It was also observed that one must not forget that these are the cases of voluntary payments and the question of payment of teaching receipt in terms of money is not very material. If the first payment was to be paid for teaching received, it was to be paid by way of gift. In this case it was found that the payment to the appellant had not been made in consideration of the teaching imparted. It appears to us that it was because of the teaching that the gift was made. It is true that he made the gift. The imparting of the teaching was considered causa causans of the making of the gift and it was not merely a causa sine qua non. In Dilip Kumar Roy v. CIT [1974] 94 ITR 1 (Bom) it was observed as under : " Having regard to the provisions of section 10 of the Act it cannot be disputed that it is only the receipts arising out of profits or gains of business, profession or vocation that can be subjected to tax under that section, but if it is a personal gift fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other occasions, will not change the nature of the character of the receipt. It is also not necessary that persons who were given the amount should be benefited by any of the qualities of the assessee by rendering of service as Khadim which has not been denied. Even a voluntary payment which is given to a priest for his personal qualities or high esteem in relation to the service rendered would only increase the amount and would not take it out of the scope of the income. The payment was voluntary and in view of the principles which have been laid down by the apex court in the case of P. Krishna Menon [1959] 35 ITR 48, it has to be seen whether the income has arisen from the profession or vocation which the assessee was carrying on as Khadim. The link of the service rendered by the assessee as Khadim and the payment made has to be seen from the circumstance as to whether it could be falling within the definition of gift which is alleged to be given out of affection and love or it was in respect of the service performed by the assessee. In the press release on which the reliance has been placed by the Income-tax Appellate Tribunal, the amount has been stated to have been given out o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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