AMRITA BAZAR PATRIKA Vs. STATE

JUDGEMENT

(1.) THIS is a reference under Sec. 66(2) of the Indian Income -tax Act of 1922. The question for the consideration of the Court is set forth in paragraph 4 of his Statement of the Case in this form : -

(2.) THE facts of the case were these : The assessee is the Limited Company known as the Amrita Bazar Patrika Ltd., and its business is that of editing, publishing and selling a paper called The Amrita Bazar Patrika. On the March 23, 1935, it published in its daily edition in Calcutta a leader with the captain 'Calcutta High Court' and in that leader certain observations were made which reflected upon the independence of judiciary.

(3.) THE assessee urged before the Commissioner of Income tax that a newspaper has two function -one, the conveying of news, and the other, that of serving as a guide and adviser seeking to form opinion and to influence the action of the public. As regards the second aspect, it is suggested that some privilege is extended to the publication of fair and accurate reports of political, judicial, legislative and other public and official proceedings and that comment on, or criticism of, the acts of persons before the public should be treated as privileged if they are made in a fair and reasonable spirit and not actuated by malice. It was further contended that a newspaper has to publish materials gathered from all parts of the world and that, therefore, it cannot be considered or treated as if it were infallible. In publishing news it is bound to take some risk and the risk attendant to the business of publishing a newspaper must be borne by the business itself. The learned Commissioner of Income Tax took the view, however -in our opinion, rightly -that what he was concerned with was the precise language of Section 10(2)(ix) and that all he had to decide was whether or not sum of Rs. 5,577 -7 -9 pies was deduction of the kind referred to in sub -clause (ix). The Commissioner points out that the assessment was for the year 1936 -37, and it was in respect of the income, profits or gains of the year ending December 31, 1935. The expenditure in respect of the contempt matter was incurred by the limited company during the year 1935 and, therefore, the whole question to be determined was whether in computing the profits or gains of the business carried on by the assessee during the year ended December 31, 1935, an allowance could be claimed in respect of that expenditure under the provisions of Section 10(2)(ix).