Constructive receipt of foreign remittances used for personal expenses can constitute taxable income from social work occupation.

Foreign remittances received in the course of a systematic social-work occupation were treated as income where the assessee appropriated part of them for personal and family expenditure. Income need not take the form of salary or wages; it may arise from an occupation even if not physically paid as remuneration. On that reasoning, use of the funds for the assessee's upkeep and household needs amounted to constructive receipt or appropriation of taxable income arising from the occupation. The contention that the remittances were meant for charitable purposes did not prevent taxation of the amounts personally used, and the assessments were therefore upheld in principle.

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Issues: Whether the assessee's receipt and personal appropriation of foreign remittances received in the course of carrying on social work constituted taxable income, and whether the Tribunal was right in law in setting aside the assessments for the assessment years 1969-70 and 1970-71.

Analysis: The assessee was found to be engaged in social work as a self-employed occupation carried on systematically and continuously. The foreign remittances were received in the course of that occupation and were used, at least in part, for the assessee's own upkeep and family expenses. Income in such a case need not take the form of salary or wages, and it may arise or accrue from the occupation even if not physically handed over as remuneration. The use of the funds for personal and family needs was treated as constructive receipt or appropriation of income arising from the occupation. The Tribunal's view that no taxable income could arise because the remittances were intended for charitable purposes was rejected.

Conclusion: The remittances, to the extent appropriated for the assessee's personal and family expenditure, constituted taxable income arising from his occupation as a social worker. The Tribunal was not right in law in setting aside the assessments.

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