1975 (11) TMI 30

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..... P.) Ltd., under which he agreed to render assistance in the promotion and formation of a cement company known as India Cements Ltd., and canvassed and obtained subscriptions for shares of the face value of at least Rs. 12 1/2 lakhs. Essen (P.) Ltd. were the managing agents of India Cements Ltd. In consideration of the assistance to be rendered by the said H. D. Rajah, Essen (P.) Ltd. agreed to giv .....

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..... ss in the hands of the assignee, and in that view the appeals also were dismissed. On a further appeal, the Tribunal held that the income received by the assessee was chargeable to tax under the head "other sources" and that in view of the definition of "earned income" in section 2(6AA)(c) of the Indian Income-tax Act, 1922, even in the hands of the assessee it would be an earned income. The Tribu .....

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..... ome of an assessee who is an individual, Hindu undivided family, unregistered firm or other association of persons not being a company, a local authority, a registered firm or a firm assessed under clause (b) of sub-section (5) of section 23--....... (c) which is chargeable under the head 'Other sources' if it is immediately derived from personal exertion or represents a pension or superannuatio .....

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..... ning to the words in the section itself. For instance, if we take the case of pension alone and read the provision, it would read as pension given to the assessee in respect of his past services and pension in respect of the past services of any deceased person could not be comprehended. The word "pension" itself presupposes that the payment is to a person who is alive. If in respect of the past s .....

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..... al was right in holding that the petitioner was entitled to treat the income as "earned income". It may be mentioned that section 2(6AA)(c) was the provision applicable for the assessment year 1959-60, but in respect of 1961-62 and 1962-63 years also the Finance Act of 1961 and the Finance Act of 1962 had made similar provision and, therefore, the assessee was entitled to consider this income as .....

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