Law:

Section:

Section 4 of the income-tax act, 1961-Income-Chargeability of-Assessee, member of a political party, was presented with a certain sum by his partymen to enable him to purchase a house-Sum presented was collected, inter alia, by organising a drama and collecting donations from party members, businessmen and general public-No portion of amount presented was withdrawn from party funds-Whether sum so presented could be treated as assessee's income-Held, on facts, no-Whether onus is upon revenue to show that amount in question constituted assessee's income-Held, yes Facts The assessee was a member of a political party and held various offices. His partymen who wished to make him a present to enable him to purchase a house, organised a drama as one of the means of collection of donations. Donations were collected from members of the party, businessmen and other members of the public. The sum was then presented to the assessee. No portion of the amount presented was withdrawn from the funds of the political party. The assessee was not an employee of the party and was not paid any remuneration by the party office. The ITO included the sum received by the assessee as his income received in the course of his vocation as a politician. The AAC allowed the assessee's appeal on the ground that the sum given to the assessee was only a donation presented to him in admiration of his personal qualities and not as remuneration for services rendered. On reference : Held As held in Dilip Kumar Roy v. CIT [1974] 94 ITR 1 (Bom.) , the onus is upon the revenue to show that the amount in question constituted the income of the assessee. In the instant case, the department had not collected any material or evidence to substantiate the contention that the amount was paid as remuneration for the services rendered by the assessee to the political party to which he was attached or that the amount represented the payment for any services, particular or special, rendered by the assessee to any political party or any other association or individual. The amount was presented to the assessee for the sole purpose of purchasing a house property for the assessee, which reflected the appreciation of…

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