| Case ID |
08efcac2-1b79-48d8-9fe7-8056634b4265 |
| Body |
View case body. Login to View |
| Case Number |
IT REFERENCE No. 6 OF 1971 |
| Decision Date |
Jul 22, 1971 |
| Hearing Date |
|
| Decision |
The Income-tax Appellate Tribunal ruled in favor of the assessee, concluding that the sum received by the assessee, amounting to Rs. 10,900, was exempt under section 10(3) of the Income-tax Act, 1961. The court emphasized that the contributions made by the assessee were not part of a business activity but rather a form of investment with an element of luck involved. The receipt of the amount was deemed a fortuitous gain rather than taxable income, reinforcing the principle that not all receipts are considered income. The decision of the Tribunal to delete this amount from the taxable income was upheld, indicating a clear interpretation of casual and non-recurring receipts under the law. |
| Summary |
In the case of 'Commissioner of Income Tax v. Sardari Lal Mehra', the Punjab and Haryana High Court addressed the issue of whether the sum of Rs. 10,900 received by the assessee from two lucky schemes constituted taxable income under the Income-tax Act, 1961. The court examined the nature of the schemes, determining that they were not business ventures but rather casual and non-recurring receipts. The decision highlighted the principles surrounding income taxation, particularly in cases involving unexpected gains from lotteries or similar schemes. The ruling reinforced the notion that not all financial gains are taxable and emphasized the importance of distinguishing between income and mere receipts. The judgment serves as a significant reference for similar cases, especially concerning casual income and the interpretation of the Income-tax Act's provisions. The keywords relevant to this case include: Income-tax Act, casual receipts, non-recurring income, taxation principles, and lucky schemes. |
| Court |
Punjab and Haryana High Court
|
| Entities Involved |
Not available
|
| Judges |
D.K. Mahajan,
H.R. Sodhi
|
| Lawyers |
D.N. Awasthy,
B.S. Gupta,
Bhagirath Dass,
B.K. Jhingan
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Sardari Lal Mehra
|
| Citations |
1973 SLD 481,
(1973) 87 ITR 47
|
| Other Citations |
CIT v. Shaw Wallace and Co. [1932] 2 Comp. Cas. 276,
Raja Bahadur Kamakshya Narain Singh of Ramgarh v. CIT [1943] 11 ITR 513 (PC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
10(3)
|