Casual and non-recurring pranami receipts were held exempt as income under the Income-tax Act.

Receipts of pranamis were treated as casual and non-recurring income, bringing them within the exemption under section 10(3) of the Income-tax Act, 1961. The reference under section 256(1) was identical to the question earlier decided between the same parties for the relevant assessment years, and the same reasoning was applied again. The issue was answered in favour of the assessee and against the Revenue, confirming the exempt character of the receipts.

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Issues: Whether the receipts of pranamis were casual and non-recurring and therefore exempt under section 10(3) of the Income-tax Act, 1961.

Analysis: The point referred under section 256(1) of the Income-tax Act, 1961 was identical to the question earlier decided between the same parties for the relevant assessment years. For the reasons already recorded in the connected matter, the receipts of pranamis were treated as casual and non-recurring receipts falling within the exemption under section 10(3).

Conclusion: The question was answered in the affirmative, in favour of the assessee and against the Revenue.

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