1928 (8) TMI 3

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....DGMENT 1. This is a reference to the Chief Court from the Commissioner of income-tax under the provisions of S. 66, Act 11 of 1922. We are asked to answer the following four questions: (i) In the circumstances stated, were the sums of Rs. 10,968 and Rs. 5,621, income, to which the Income-tax Act applies, within the meaning of S. 4, Income Tax Act, 1922 (ii) Did the income rece....

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....ne condition of this decree was that Jagmohan Das was to receive certain property. Indar Prasad considered that the decree gave Jagmohan Das more than he was entitled to and he appealed to the Court of the Judicial Commissioner. The Judicial Commissioner's Court dismissed his appeal on 10th March 1924. Indar Prasad was not satisfied. He applied for leave to appeal to their Lordships of the Jud....

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.... no doubt as to the fact that it is income to which the Income-tax Act applies within the meaning of S. 4. The position was this. If Indar Prasad had at once complied with the terms of the decree Jagmohan Das would have obtained this property. From this property he could have obtained an income. Owing to Indar Prasad taking the case to their Lordships of the Judicial Committee the enjoyment of Jag....

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....oyee. But they were not of a casual and non-recurring nature. In these circumstances the exception does not apply and they are assessable to income-tax. 4. We, therefore, answer the first question in the affirmative. In respect to the second question we find that the income received in 1925-26 which had escaped assessment to income-tax came within the scope of S. 34 of the Act. We, therefore, a....