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TMI Blog1958 (3) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The assessee, Shri Maharaj Shri Govindlalji Ranchhodlalji is a direct descendant of Shri Vallabhacharyaji who founded the faith known as Vallabh Sampradaya . Maharaj Shri is not a sanyasi. He has married and has children. He is succeeded by his sons who inherit and divide the properties. The assessee is a young man and resides in Porbandar. He keeps an idol of Lord Krishna in his house. Offerings are not made by the followers to the idol but to the Maharaj Shri, the assessee. These offerings are made usually at the time of prayers. The assessee has also to perform some obligations as the head of this faith. He is looked upon by his disciples as Guru who is privileged to give mantras to his followers. 3. Regular accounts are m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. They are annexures B, C and D, respectively. The assessee's counsel desired that paragraph 4 be deleted. We think it is necessary as it indicates the exact state of affairs. The Departmental Representative accepts the statement of case and has no suggestions to offer. J. M. Thakkar with Parikh, for the assessee G. N. Joshi with R. J. Joshi, for the Commissioner JUDGMENT The judgment of the court was delivered by CHAGLA, C.J.--The assessee is a direct descendant of Shri Vallaphacharya who founded a faith known as Vallabh Sampradaya. It has been found as a fact by the Tribunal that he is not a sanyasi, that he has married and has children and that he will be succeeded by his sons who would inherit and div ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xempted from tax under one of the provisions of the Income-tax Act, and Mr. Thakkar, on behalf of the assessee, has strongly pressed upon us that these particular receipts are personal gifts made by the devotees to the assessee and, therefore, are exempted from payment of tax. Now, it is perfectly true that a personal gift is exempted from tax on the ground that it is casual and non-recurring. But the essence of such a gift is that it should be personal. It should be voluntary; the person making the present should have no obligation to make it and it should be made by the person out of personal consideration for the donee. Mr. Thakkar's contention is first that in this case there is no obligation upon the disciples to make these gifts. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disciples a very high and august office. It is impossible to accept the suggestion that the gifts are made out of personal regard for the assessee. It is not the charm of his personality or his personal virtues or characteristics that induce his followers to make these gifts. The gifts are made to him because he is the head of his sect. Mr. Thakkar says that he is the head of his sect because he is the descendant of Shri Vallabhacharyaji. Again, it makes no difference whether the office is hereditary, or whether the office is held by reason of the fact that the holder of the office is descendant of his forefather who held the same office in his time. Whether it is due to heredity or any other cause, the fact remains-an incontrovertible fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it, it accrues to him by virtue of his office or employment, that is, by way of remuneration for his services and the court held that the cricketer was liable to pay tax. Now, Mr. Thakkar says that in this case the contract of employment entitled him to receive this voluntary payment. That is perfectly true. But the English court's decision is not based upon this contract. All that the court says is that the fact that there was this contract was a strong ground for holding that the amount was received by the recipient by virtue of his employment. Therefore, it is not necessary that the recipient of an office should receive presents by virtue of a contract in order to constitute those receipts income. If he receives them because he is h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Thakkar wanted to argue that even if these receipts constituted income , he was entitled to deductions permissible under the income-tax law. No question has been raised on this reference and we cannot go into it. But when the matter goes back to the Tribunal for final disposal, it may be that the assessee may be in a position to point out to the Tribunal what deductions he is entitled to, which have not been allowed to him. All that we can say on this reference is that we are sure that the Tribunal will dispose of the matter under section 66(5) according to law. It is perhaps not strictly necessary to decide whether the case falls under section 10 or 12. The view taken by the tribunal is that the assessee practises a vocation. We are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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