RAGHUVANSHI MILLS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) -

(2.) THE question that arises in this reference is whether the two sums of Rs. 8,25,000 and Rs. 5,75,000 received by the assessee, the Raghuvanshi Mills, Ltd., Bombay, on September 8, 1944, and on December 22, 1944, respectively, are subjected to tax.

(3.) SIR Jamshedji attempted to distinguish this case on the ground that the Privy Council was considering the British Columbia Taxation Act and it would be unwide to apply those observations of the Privy Council based upon the construction of one taxation statute to the provision of a different taxation statute. But as I read the judgment of the Privy Council, it is not on the constructions of any particular section that these observations of the Privy Council are based. The Privy Council had laid downs general principle which is as much applicable to the British Columbia Taxation Act and as to our own Income-tax Act, because the definition of "income" under our Act is a very wide one and it covers innumerable cases. I am, therefore, of the opinion that the amount received by the assessee from the insurance company is clearly a revenue receipt subject to tax.