TaxTMI 
TaxTMI 
1993 (2) TMI 1
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....and 1975-76, is income taxable under the heading 'Other sources'?" The Ballarpur Paper and Straw Board Mills Ltd. (Ballarpur) is a public limited company engaged in the manufacture of paper and straw board. It undertook to set up a caustic soda/chlorine manufacturing plant at Ballarpur. For this purpose, it entered into an agreement with Krebs, French concern, for purchase of certain machinery and equipment. There was a second agreement between Ballarpur and Krebs whereunder Krebs undertook to provide services of certain personnel including engineers for setting up the plant at Ballarpur. Krebs, in turn, entered into an arrangement with a Swiss concern, Escher Wyas Zurich, for the supply of certain machinery and also to make available th....
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....im by the Bombay High Court. For a proper appreciation of the question arising herein, it is necessary to notice certain factual statements contained in the statement of the case. It is stated therein: "according to this agreement, Ballarpur were under an obligation to pay by the device of delegation invoices opened with a bank in France, certain amount of salaries at agreed rates to Krebs and Cie, Paris for setting up the plant at the town of Ballarpur.... The Tribunal clarified that there was no dispute between the parties that the amounts of Rs. 3,82,481 and Rs. 67,200 paid by Ballarpur through Krebs to the assessee for services rendered by it in the two respective years were taxable under the heading 'Salary'. It further clarified th....
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....o define the expression "income" in precise terms. Anything which can properly be described as income is taxable under the Act unless, of course, it is exempted under one or the other provisions of the Act. It is from the said angle that we have to examine whether the amount paid by Ballarpur by way of tax on the salary amount received by the assessee can be treated as the income of the assessee. It cannot be overlooked that the said amount is nothing but a tax upon the salary received by the assessee. By virtue of the obligation undertaken by Ballarpur to pay tax on the salary received by the assessee among others, it paid the said tax. The said payment is, therefore, for and on behalf of the assessee. It is not a gratuitous payment. But f....
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....elied upon certain decisions in support of his contention. The first is the decision of this court in Nalinikant Ambalal Mody v. S. A. L. Narayan Row, CIT [1966] 61 ITR 428 (SC). An advocate was appointed as a judge. He received certain income after his appointment as a judge in lieu of the professional service rendered by him before his appointment. The question was whether the said amount is taxable. It was held that it was not ( in view of the provisions of the Act as it then stood ). The basis for the said decision is that the assessee therein cannot be said to be carrying on the profession of an advocate at the time he received the said income. We are unable to see how the said decision helps the assessee herein. Indeed, in the said de....