1983 (4) TMI 109

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....sessee received a stipend of Rs. 2000, during the year under appeal from a concern of the Chartered Accountants, namely, M/s M.P. Sharma & Co., from whom he was receiving training as an articled clerk. The question arose whether the stipend constituted the income of the assessee liable to tax. The assessee's claim was that the stipend was exempt u/s 10(16) of the IT Act, 1961. The authorities belo....

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....orce as all the Chartered Accountants did not follow the practice of paying a paltry amount to the articled clerks to meet the cost of books coaching fee, examination fee etc. In this background, Shri Sharma argues that the stipend was not paid to the assessee as compensation for rendering the services, but to meet out the cost of books, coaching fee, examination fee etc. Which an articled clerk h....

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....d Accountant, and, therefore, no contribution can be made by him in the work of Chartered Accountant. So an articled clerk, who joins a Chartered Accountant with a view to learning and receiving training cannot assist the Chartered Accountant in his work. Therefore, it cannot be said that the payment was made by the concern of Chartered Accountants to the assessee for the services rendered by him.....