Law:

Section:

Section 2(6AA) of the Indian Income-tax Act, 1922 - Earned income - Assessment years 1946-47 to 1950-51 - Whether if income from "other sources" can be attributable to direct personal effort of assessee without use of any intermediate agency, then alone assessee can claim benefit of "earned income under clause (c) of section 2(6AA) - Held, yes - Income of assessee consisted of income from forestry, fisheries, royalties etc. - Tribunal found that there was no immediate personal exertion on part of assessee in production of said income - Whether assessee failed to establish ingredients which, would enable him to claim benefit of 'earned income' under section 2(6AA)(c) - Held, yes FACTS For the relevant assessment years, the income of assessee consisted of income from forestry, fisheries, royalties, etc. The assessee claimed that he was entitled to earned income relief under section 15 as part of his income constituted earned income within the meaning of section 2(6AA) of 1922 Act. The ITO, the AAC and the Tribunal negatived his contention in that behalf. On reference: HELD In the case of income chargeable under the head 'profits and gains of business, profession or vocation' section 2(6AA) provides that the mere fact that the business, profession or vocation is carried on by the assessee is sufficient to entitle him to claim the benefit of earned income. In the case of a firm where the assessee is a partner, he can claim the benefit only if he is actively engaged in the conduct of the business, profession or vocation. After providing in this way for income from business, profession or vocation, the Legislature says that in the case of income chargeable under the head 'other sources', the assessee is entitled to the benefit of earned income if he shows that the taxable income under this head is immediately derived from his personal exertion. In other words, he must show that it is his personal exertion. In other words, he must show that it is his personal exertion which brings into existence the income which is sought to be charged. The words 'exertion' and 'immediately' as used in the section should have their ordinary dictionary meaning. Taking the dictionary…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492