COMMISSIONER OF INCOME TAX Vs. R M DATTA

JUDGEMENT

(1.) This reference has been made at the instance of the Commissioner of Income-tax. The question referred to this court is :

(2.) The assessee, in the present reference, is Justice Ramendra Mohan Datta who has since retired as a judge of this court. The assessee received sums of Rs. 14,000 and Rs. 10,000 in the accounting years relevant to the assessment years 1968-69 and 1969-70, respectively, as arrears of professional fees from solicitors and clients for services rendered by him as a lawyer before he was elevated to the Bench in the year 1967.

(3.) The Income-tax Officer found that the assessee had maintained his accounts on receipt basis, i.e., on cash basis, and not on accrual basis. He, however, held that the sums received by the assessee as arrears of professional fees were not received before his discontinuance of the profession, although it could have been included in the total income of the assessee had it been received before such discontinuance. Hence, he was of the view that the said amount would be chargeable to income-tax in view of Section 176(4) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). Accordingly, he charged the same to tax in both the years.