Recurring allowance under recognised custom held taxable as revenue income, not capital receipt in lieu of dowry.

An annual allowance paid under a recognised custom in Jind State to married daughters and sisters of the ruling family, and continued by Government direction, was held to be revenue income chargeable to tax under the Indian Income-tax Act, 1922. The receipt was recurring, arose from a definite source, and was not a voluntary or casual payment. It was not a capital receipt in lieu of dowry, and the exemption for casual and non-recurring receipts did not apply. Authorities cited by the assessee were distinguished because they involved different kinds of payments lacking a binding custom or recurring character.

---

---

Issues: Whether the annual allowance of Rs. 10,000 received by the assessee was revenue income chargeable to tax, or a capital receipt paid in lieu of dowry and therefore outside the charging provisions of the Indian Income-tax Act, 1922.

Analysis: The allowance was found to arise from a recognised custom in Jind State of granting annual allowances to married daughters and sisters of the ruling family in lieu of dowry, and the Government of India directed its continuation on that basis. The receipt was recurring, flowed from a definite source, and was not a mere voluntary or casual payment. The authorities relied on by the assessee were distinguished because those cases involved payments not shown to be referable to any binding custom or were of a different character, such as personal gifts or non-recurring grants. The exemption for casual and non-recurring receipts was inapplicable.

Conclusion: The amount of Rs. 10,000 was revenue income liable to tax under the Indian Income-tax Act, 1922, and the question was answered in the affirmative.

---