Law:

Section:

Section 4 of the Income-tax Act, 1961 – Income – Chargeable as – Assessment year 1964-65 – One late 'A' was exponent of epics and gave religious discourses in performances organized all over India – He celebrated his Sashtiabdapoorthi and received cash presents on such occasion – Cash presents were outcome of contributions made by people belonging to different strata of society – Tribunal held that said occasion was to remunerate deceased for professional services rendered in giving such religious discourses and assessed said sum as income - Whether since these was no material on record for saying that sum in question was actually remuneration paid for past performances, Tribunal's assumption that said sum was remuneration had absolutely no basis and therefore, its assessment as income was not valid - Held, yes FACTS One late 'A' was an exponent of the epics like the Ramayana and the Mahabharata. Performance were being organised all over India and he gave discourses in such performances. Considerable amounts were collected at the time of his discourses, and he was being assessed to income-tax on such receipts from the assessment year 1957-58 onwards. During the assessment year in question 'A' celebrated his Sashtiabdapoorthi. On that occasion, there were cash presents to the extent of Rs. 19,700. The ITO estimated a sum of Rs. 6,700 was presents received by 'A' from his near relations and he took them to be personal gifts made by such relations as token of their personal esteem for him. After excluding that amount, he took the balance of Rs. 13,000 as assessable income and brought it to tax. The appeal field before the AAC and the Tribunal were unsuccessful. The Tribunal held that people belonging to different strata of society and coming from different castes and communities had made the contributions, which unmistakable indicated that the payments were made in token of appreciation of the religious discourses rendered by 'A' and which he was pursuing as his avocation. The Tribunal had further held that Sashtiabdapoorthi was made an occasion to remunerate the 'A' for the professional services rendered in giving religious discoverses. On reference: HELD The…

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