https://www.taxtmi.com/caselaws?id=276658 Amounts received from a lessee towards local cess were not income to the extent they matched the assessee's legal liability under the Bombay Local Boards Act, 1923, because the relevant test was the amount legally payable, not whether the local board had demanded or collected it. Any excess retained over the cess lawfully payable constituted taxable income as surplus in the assessee's hands. The claim to exemption under section 4(3)(vii) of the Indian Income-tax Act, 1922 failed because the receipts were not shown to be casual or non-recurring in the statutory sense. The result was that only the cess component lawfully payable was excluded from income. en-us Thu, 14 Apr 1960 00:00:00 +0530 Thu, 15 Nov 2018 12:36:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276658 Amounts received from a lessee towards local cess were not income to the extent they matched the assessee's legal liability under the Bombay Local Boards Act, 1923, because the relevant test was the amount legally payable, not whether the local board had demanded or collected it. Any excess retained over the cess lawfully payable constituted taxable income as surplus in the assessee's hands. The claim to exemption under section 4(3)(vii) of the Indian Income-tax Act, 1922 failed because the receipts were not shown to be casual or non-recurring in the statutory sense. The result was that only the cess component lawfully payable was excluded from income. Case-Laws Income Tax Thu, 14 Apr 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276658