COMMISSIONER OF INCOME TAX Vs. CHINNA OOMEN DR

JUDGEMENT

(1.) AT the instance of the Revenue, the following question has been referred to this court for its opinion by the Income-tax Appellate Tribunal :

(2.) THE assessee is an individual, and for the assessment years 1975-76 and 1976-77, the chit dividends of Rs. 2,188 and Rs. 3,145 respectively received by the assessee from the Bank of Madurai Limited were assessed under the head "Other sources" by the ITO. On appeal, the AAC confirmed the assessment of these amounts. On further appeal to the Tribunal, the Tribunal, after examining the bye-laws of the monthly chits of the Bank of Madurai Limited under which the chit dividends had been paid to the assessee each months, was prima facie of the view that the amounts will not partake the character of income. However, in view of the concession made by the assessee's learned counsel that they will partake the character of income, the Tribunal proceeded to consider the further question as to whether the amounts of dividend which have been considered to be income, were causal and non-recurring so as to enable the assessee to claim the benefit of s. 10(3) of the Act. THE Tribunal held, that as there is no certainty of getting the dividend and more so the quantum of such dividend, as that would depend on the amount of bid at every auction, the receipt should be taken to be casual and non-recurring. Aggrieved by the said view taken by the Tribunal, the Revenue is before us by way of this reference.