Law: Income Tax Act, 1922

Section: 10

(a) Income-tax-----Taxability---Name given to a transaction by the parties concerned does not necessarily decide the nature of the transaction---Transaction which on its true construction was of a kind that would escape tax, is not taxable on the ground that the same result could be brought about by a transaction in another form which would attract tax. Inland Revenue Commissioner v. Wesleyan General Assurance Society (1948) 16 ITR 101 ref. (b) Income-tax--- ----Capital or revenue receipts---Determination---Principles---While determining if a particular receipt was capital or revenue in nature the substance of the transaction had to be seen. (c) Income-tax---. ----Revenue---Concept---Revenue means flow of funds, that is money or rights to money which have resulted from the trading activities of a business as distinct from funds (capital) invested by the owner or loans made by creditors and others. MWE Glantier and Bunderdown in Accounting, Theory and Practice ref. (d) Income-tax--- ----Capital or revenue receipt/expense---Determination---Test---Capital receipt or revenue receipt/expense will bear the same significance both in fact as well as in law---To judge the exact nature of receipt or an expense no definite tests of universal application could be 'evolved or have been attempted to be evolved nor any infallible criterion can be or has been laid down which can be helpful in indicating the considerations which may relevantly be borne in mind in approaching the problem. MWE Glantier and Bunderdown in Accounting, Theory and Practice ref. (e) Income-tax Act (XI of 1922)---S.10---Taxability of a receipt under S.10, Income-tax Act, 1922 was related merely to the fact if the same arose as a direct incidence of business, profession or vocation---Fact that a receipt was casual or non-recurring was of less importance inasmuch as even a casual or non-recurring receipt was liable to tax if the same arose out of the business, profession or vocation carried by an assessee. (f) Income-tax--- ----Exemption, claim of---Burden of proof to claim exemption of whole or a part of a receipt remains on the person claiming the same. (g) Income-tax Act (XI of 1922)-- ,…

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