MOHIUDDIN AHMAD Vs. SECRETARY OF STATE FOR INDIA IN COUNCIL
LAWS(PVC)-1900-5-25
PRIVY COUNCIL
Decided on May 25,1900

MOHIUDDIN AHMAD Appellant
VERSUS
SECRETARY OF STATE FOR INDIA IN COUNCIL Respondents

JUDGEMENT

Ghose, J - (1.) The question which arises in this case is whether the Sajjadanashin of the Sasseram Khankah is assessable with income-tax under the provisions of Section 4 of Act II of 1886, in respect of such moneys as he draws from the properties appertaining to the Khankah for the purpose of his own maintenance and the maintenance of his family.
(2.) Section 4 of the Act prescribes: "Subject to the exceptions mentioned in the next following section, there shall be paid, in the year beginning with the 1 day of April 1886, and in each subsequent year, to the credit of the Government of India, or as the Governor-General in Council directs, in respect of the sources of income specified in the first column of the second schedule to this Act, a tax at the rate specified in that behalf in the second column of that schedule." The word "income" has been defined in an earlier section, Section 3, and it means income and profits accruing and arising or received in British India, and includes in the case of a British subject within the dominions of a Prince or State in India in alliance with Her Majesty, any salary, annuity, pension, or gratuity payable to that subject by the Government or by a local authority established in the exercise of the powers of the Governor-General in Council in that behalf." And referring to the definition of the word "salary," as herein mentioned, we find that it includes allowances, fees, commissions, perquisites or profits received, in lieu of or in addition to a fixed salary, in respect of an office or employment of profit, but subject to any rules which may be prescribed in this behalf, it does not include travelling, entage, horse or sumptuary allowance, or any other allowance granted to meet specific expenditure. Section 5 of the Act lays down: Nothing in Section 4 shall render liable to the tax: (a) Any rent or revenue derived from land which is used for agricultural purposes and is either assessed to land revenue or subject to a local rate assessed and collected by officials of the Government as such; or (b) Any income derived from: (i) Agriculture or (omitting the other portions of the section). (c) Any income derived from property solely employed for religious or public charitable purposes and so forth.
(3.) In the present case the whole of the income, which the Khankah derives, is from agricultural lands; and it follows therefore, in view of Section 5, to which we have just referred, that the income derived by the Khankah could not be assessed with income tax.;


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