AMARENDRA NATH CHAKRABORTY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The assessment year is 1958-59, corresponding to the accounting year 1957-58. The assessee is the eldest son of Sri Sri Thakur Annkul Chandra, the founder of the Satsang movement. The assessee is what is called a ritweek of the Satsang and for his work as a ritweek he receives a salary from the institution. In his capacity as a ritweek he initiates disciples into the Satsang cult and receives offerings from such disciples.

(2.) For the assessment year 1958-59, the assessee was assessed for income from salary and for the offerings that he received from his disciples as professional income. The assessee did not object to such assessment. By a deed of gift, however, dated the 6th December, 1957, one Charubala Dasi made a gift of a piece of land to the assessee in the town of Calcutta. In the deed itself this plot of land was valued at Rs. 40,000 for purposes of stamp duty.

(3.) The Income-tax Officer held that the assessee acquired the said piece of land by exercising his profession of preaching the religious cult in question to the donor. According to the Income-tax Officer the value of the land should, therefore, be taken as the assessee's professional receipt and was taxable as the assessee's income in the accounting year 1957-58. The Income-tax Officer's estimate of the value of the property was Rs. 60,000 and he included this sum in the assessee's total income for the assessment year 1958-59.