1931 (5) TMI 37

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....a JUDGMENT Authored By : Courtney Terrell, Sankara Balaji Dhavle Courtney Terrell, J. 1. The facts which have given rise to the present reference may be simply stated. The assesses is the Receiver and manager appointed by the High Court of Calcutta to take charge of and manage the property known as the Jheria Raj estate. He was appointed in proceedings in which the widows of the late p....

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....ook after the interests of the parties to the litigation and that he was not appointed for the purpose of earning the income of the estate. This view of the matter has been upheld by the Commissioner on appeal and the case reaches us for final decision. 2. First, it may be said that so far as the assessee's position as a manager is concerned the mere fact that he was appointed by the Court ....

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....red solely for the purpose of making or earning such income, profits or gains, provided that no allowance shall be made on account of any personal expenses of the assessee." 3. Now it is contended on behalf of the Department that the true construction of this section is that if any part of the salary paid to the manager is to be attributed to some function other than that of making or earning o....

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....uch circumstances it could not be doubted that the salary paid at the rate of Rs. 800 a month could be deducted as being incurred solely for the purpose of making or earning the royalty income. But if it was found as a matter of convenience better to appoint a single manager at Rs. 1,000 a month to carry on both such functions, if that course were taken, could it be argued that no part of the sala....