9911796707
TMI Blog1980 (1) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(1) of the Expenditure-tax Act as it stood at the relevant time ? " Before we proceed to narrate the facts giving rise to the reference, we may reproduce here, s. 3(1) of the Act which is relevant for the disposal of this reference. " 3. (1) Subject to the other provisions contained in this Act, there shall be charged for every financial year commencing on and from the first day of April, 1958, a tax (hereinafter referred to as expenditure-tax) at the rate or rates specified in the Schedule in respect of the expenditure incurred by any individual or Hindu undivided family in the previous year : Provided that no expenditure-tax shall be payable by an assessee for any assessment year if his income from all sources during the relevant p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Expenditure-tax Officer, with a slight modification. He reduced the assessable expenditure by Rs. 9,065. The assessee then filed an appeal before the Tribunal, which by its order dated April 7, 1970 (annex. E), allowed the appeal and set aside the expenditure-tax assessed by the assessing authority. The Commissioner of Expenditure-tax made an application to the Tribunal to refer to this court the question of law arising out of the order of the Tribunal dated April 7, 1970, and the Tribunal allowed the application and has made this reference. The learned counsel for the Commissioner has urged that the income determined for the purpose of income-tax cannot form the basis for the purposes of assessment of expenditure-tax under the Act. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s often loosely spoken of as capital. But capital, though possibly the source in the case of income from securities, is in most cases hardly more than an element in the process of production. " Consequently, we have to say what is the income of the assessee for the relevant assessment year. In other words, the question is whether the amount of Rs. 62,204 awarded to the assessee on account of compensation for assumption of his right to collect customs and excise duty, can be considered as his income. It may be pointed out that in the reference arising out of the Tribunal's order in connection with income-tax it was held by this court that the sum of Rs. 62,204 was a capital receipt not liable to tax and that the said amount of Rs. 62,204 h ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
