COMMISSIONER OF INCOME TAX Vs. SASTRI C S

JUDGEMENT

(1.) UNDER Section 66 (1) of the Income-tax Act, the Income-tax Appellate Tribunal of Bombay has referred the following question for the decision of this court :

(2.) THE relevant facts are thess : THE assessee is a chartered accountant. During the accounting year which ended on 31-12-1950 the assessee earned Rs. 31,006/- from the practice of his profession, he received also a further income of Rs. 741 from other sources, making a total of Rs. 31,747/-. He incurred a loss of Rs. 15,598 in respect of the properties that he owned. THE result was that his total net income for the year was only Rs. 16,149.

(3.) THERE is yet another consideration. If the view contended for on behalf of the Department is right, it would have been far simpler to say in Section 2 (2) of the Finance Act, 1950 "one-fifth of the" earned income or of the total income, whichever is smaller, but not exceeding four thousand rupees."