COMMISSIONER OF INCOME TAX Vs. LATE RAJESH PILOT

JUDGEMENT

(1.) THE appeal is by the Department and it relates to the asst. yr. 1992 -93. The assessee died on 29th July, 2000 and assessment has been made in the name of the legal heir of the deceased. The question that falls for consideration is whether the amount received is 'income'. The Commissioner of Income Tax (Appeals) [for short 'CIT(A)'] held that the amount could at best be in the nature of a gift or donation on account of the assessee's personal qualities and for the social work that he had been doing for the social upliftment of the people of his constituency and the country at large and consequently, deleted the amount of Rs. 10 lacs from the assessment. The order of the CIT(A) has been confirmed by the Tribunal.

(2.) IT is well -settled that every receipt is not taxable as income, it may be a receipt, but not necessarily 'income'. The question is whether the ingredients commonly embedded in the concept of 'income' are present.

(3.) THE judgment in A. Govindarqjulu Mudaliar (supra) was considered and explained in the later judgment in the case of Parimisetti Seetharamamma v. : [1965]57ITR532(SC) :