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TMI Blog1989 (6) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... essee had also claimed a sum of Rs. 5,000 as exempt in very same part III of the return which was received by him from Kerala State Government as an award. The ITO in course of assessment proceedings accepted the assessee's contention in respect of Science Technology award from Kerala State Government in a sum of Rs. 5,000 but rejected assessee's contention regarding exemption of US Dollar 5,000 received from the Osaka Junior Chamber of Commerce,Japan. The ITO narrated the details in paras 2, 3 4 of its order with assessee's contentions, but rejected the same, as according to him the payment of US Dollar 5,000 was stipulated to be as lecture fee and it was on that basis that administrative sanction was granted by the Government of India. The ITO observed that the said amount was offered and accepted as lecture fee and out of the said amount 20% thereon also came to be deducted as per Japanese tax laws. Aggrieved by the said assessment order, the assessee came before the CIT(Appeals) and he also dealt at length with assessee's contentions, but confirmed the order of the ITO. He, however, observed that the issue has to be decided on one single claim i.e. whether it is in the natu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Industrial Research (1978-81) ; and Secretary, Department of Science and Technology since 1978. He was also Chairman of the Indian Space Research Organisation during January 1973. He submitted that Prof. Menon is one of the top scientists not only in this country but in the world as he is a scientist who is internationally renowned. He went on to submit that prior to joining Government service, Prof. Menon was the Director of the Tata Institute of Fundamental Research,Bombaysince 1966. He submitted that it was during his association with the said Institute that Prof. Menon attained a position of eminence and high academic distinction in the sphere of scientific research inIndiaand abroad. He was also elected as a Fellow of the Royal Society,Londonand in 1968 the President of India awarded him the "Padma Bhushan". He was also member of UN Secretary General's Advisory Committee on the application of science technology to development during 1972-79 and was its Chairman for two years. He was a special advisor to the International Federation of Institutes for Advance Study,Stockholmand Honorary Foreign member, American Acadamy of Arts Science. He went on to read a note given by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid as fee or honorarium, present or payment for recommendation, the same be kept by Prof. Menon. In the voluminous paper book he has also placed the keynote address delivered by Prof. Menon and he submitted that it was due to this eminence, high calibre and knowledge of Prof. Menon that he was paid the said amount and that it was not income. He drew our attention to definition of fee given in Webster's Seventh New Collegiate Dictionary along with meaning of the word "honorarium" given therein. He also cited decision in case IRC v. Wesleyan General Assurance Society [1948] 1 All. ER 555 in support of the contention that it is not the name given to the transaction by the parties that should determine its character but who are the recipients of the same should be considered. He went through the explanatory notes on the Finance Act, 1972, CBDT Circular No.108 dated 20-3-1973 giving the background as to why definition of income in sec. 2(24) had been amended. At last he submitted that it is wrong to say that there was a contract between the JCI Conference and the assessee and for that he drew our attention to Chitty on contracts, photostat copy of which is placed on assessee's compi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... main theme of this year, which is "energy : planning for the future". Although I was also asked to participate in the seminar, I regret that I cannot because I have to chair the Conference of the Association of the National Universities ofJapanat the same date inTokyo. As I am well aware of your incomparable competence in the field, especially on the importance of the problem for developing countries, I strongly recommended to the organizing group to invite you as one of the keynote speakers. I will deeply appreciate it if you could spare your busy schedule in accepting the invitation enclosed herewith. With best wishes, Sincerely Yours, Sd/- Takashi Mukaibo President, TheUniversityofTokyo. 4.2 It is apparent from the above letter that it was due to uncomparable competence in the field of Science that the assessee's name was introduced by the President of University of Tokyo to XXXV JCI World Congress. It was not a smaller occasion as the topic which was assigned to Prof. Menon was to be a challenge to the 10,000 young JC members from 84 nations throughout the world as mentioned in the very first letter sent to Mr. Menon. The following reminder from the said Congress ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 11, 1980) planned during the Congress and to participate in the Panel discussion of the second day which would be televised nationally. They will provide all expenses for the journey, including a first class return air fare and hotel accommodation and a lecture fee of US Dollar 5,000. I have received communication from our Embassy inTokyothat the Japanese Foreign Ministry is keen on my participation as invitee. I have been informed by our Science Counseller inTokyothat the other invitees expected to attend include : Mr. Heath (former Prime Minister of UK), Prof. John K. Galbraith, and the Chairman of OPEC. Though this had come sometime ago, I had not put it up since I was not sure of my commitments around that time period. In a recent discussion with Shri E. Gonsalves, Secretary, Ministry of External Affairs, he suggested that I should visitJapanfor a variety of reasons, and this could be on my return from the visit I am making toChinabetween 25th August and 4th September. Whilst this will not be possible on account of my commitments here in September, a very short visit in November, when Parliament is not in session and now planned should be possible. In particular, I would lik ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame could be brought about by a transaction in another form which would attract tax." 4.5 We shall be failing in our duty in case we ignore the background in form of explanatory notes on the Finance Act, 1972, C.B.D.T.'s Circular No. 108 dated20-3-1973. What is to be seen in the present case is whether what the assessee got was income at all. If it was not income it could not be termed as casual income. We cannot do anything better, than to extract a few lines from the said explanatory notes :-- (1) The definition of "income" in section 2(24) of the Income-tax Act has been amended to specifically provide that winnings from lotteries, crossword puzzles, races including horse races, car games and other games of any sort or from gambling or betting of any form or nature whatsoever will be regarded as income for purposes of the Income-tax Act [Section 3(b)(ii) of the Finance Act]. "It should, however, be noted that receipts, which are of a casual and non-recurring nature, will be liable to income-tax only if they can properly be characterised as "income" either in the general connotation or within the extended meaning given to the term by the Income-tax Act." 4.6 Whether the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to deliver this keynote address, looking to the stature which this conference was going to add to Prof. Menon in person and country in general, probably Prof. Menon would have gone by himself and even Government of India would have persuaded him to go because our Embassy in Tokyo was also interested in participation by Prof. Menon in the said congress. We are unable to believe that paltry sum of US Dollar 5,000 was any bait for Prof. Menon. This is uncontroverted that Prof. Menon has been in the whole-time employment of government ofIndiaand during such employment he could not exercise any profession or vocation on his own for earning income. Both the Presidents of Tokyo University and that of Osaka JCI were aware that Prof. Menon was holding an high office in Government of India and was incharge, Department of Science Technology and he was not engaged in any profession or vocation. This stands amply confirmed by the permission granted from Government of India, which is available on assessee's compilation. The fact that Government of India spared Prof. Menon even from the cut of 1/3rd out of the sums received by him, which could be cut as per rules, and the fact that Government ..... X X X X Extracts X X X X X X X X Extracts X X X X
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