TaxTMI 
TaxTMI 
2008 (2) TMI 651
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.... income from other sources. As borne out from the assessment order, it is noted that assessee is a well known social reformer and philosopher and lacs of followers are spread all over the world. The Assessing Officer from the note enclosed with the computation of income chart that assessee had received voluntary gifts of Rs. 1,22,70,795 on his 80th birthday from his admirers and well wishers in recognition of his personal qualities and noble thoughts. The said amount had been claimed as exempt. The Assessing Officer after taking cognizance of the decision of Hon'ble Allahabad High Court in the case of Addl. CIT v. Ram Kripal Tripathi [1980] 125 ITR 408 held that conducting spiritual discourses amounted to a vocation. The assessee replied that the impugned sums had been received at his birthday function and these payments were not paid to him in the course of practice of any profession or vocation, hence, the same did not represent any income. The assessee also relied on the decision of Hon'ble Bombay High Court in the case of Dilip Kumar Roy v. CIT [1974] 94 ITR 1 and also on the decision of Hon'ble Supreme Court in the case of Mahesh Anantral Pattani v. CIT [1961] 41 ITR 481....
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....included G.D. Birla International Award for Humanism for community leadership and Padma Vibhushan title given by the Government of India. The ld. Counsel referred to paras 31 to 63 of the paper book to support the above contentions. Thereafter the ld. Counsel contended that it was a movement and not a vocation, hence, consideration of the same as vocation was not a proper tribute to such person rather it was a dis-credit to him. The ld. Counsel also contended that on earlier occasion only once in the life of the assessee such gifts were received and which were accepted by the Department, hence, it was not a case where the assessee was engaged in vocation and was receiving fees from disciples or followers in the form of gifts in a regular manner. The ld. Counsel also referred to the composition of income in various years to show the nature thereof and also referred to the assessment order passed under section 143(3) of the Act for assessment year 1975-76 wherein the persons who had gifted at that time had stated that the present given to him had nothing to do with discourses or lectures they attended and the presented gifts to him due to the personal qualities of the assessee whom t....
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....contended that in the case of P. Krishna Menon (supra) the assessee, after retirement from Government services, engaged himself in teaching of Vedanta philosophy whereas in the present case the assessee established this movement as a cause of his life and devoted himself to that cause, hence, this vital fact was different in the case of the assessee from that case, hence, the ratio of that decision could not be applied to the present case. 8. The ld. D.R., on the other hand, placed strong reliance on the order of ld. CIT(A). 9. We have considered the submissions made by both sides, material on record and orders of authorities below. It is noted that the assessee is a social reformer who established a movement called 'Swadhyaya' for the up-liftment of masses which was joined by great number of followers. It is also noted that the assessee has devoted his whole life to the cause of this movement. It is also noted that assessee has never charged any fee or remuneration from his followers or the persons who attended his lectures at any point of time. In this background, we find sufficient force in the contention of the assessee that it was movement or campaign and not a vocation.....
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....uestion could be said to have arisen from the business of the assessee as contemplated under section 28(v). Section 28 is a charging section for profits and gains of business or profession and it takes into account the receipts of specified categories as of income as well as the receipts which can be generally construed as income in the ordinary sense. But the fact remains that all the receipts mentioned in section 28 are inherently of income nature except in case of receipt under a Key Man Insurance Policy which is a recovery of expenditure already allowed as deduction. Hence, prima facie the loan received by an assessee in the course of business is not envisaged as income. Now, coming to specific provisions of sub-section (iv) of section 28 it is also in connection with the value of any benefit or perquisite arising from business, which means that such benefit or perquisite should be in the nature of income from the very beginning or it must have characteristics of income before it becomes chargeable at a later stage, if the original transaction is completed as designed. No material had been brought on record to show that the loan agreement provided for such waiver at subsequent ....