Commissioner of Income-tax, Madras Vs. the Bar Council, Madras. - Court Judgment

Excerpt:

- order(the order of the court was delivered by the honble the chief justice).the learned advocate-general on behalf of the bar council states that the council will utilize its income from investments solely for legal education and for expenses, including establishment charges, in connection therewith. in future separate accounts will be maintained for this purpose. in past years the council have been treating the investments and income therefrom as applicable to legal education, investments. this makes it perfectly clear that the income of the council received from investments is not taxable. as we have pointed out in our order dated the 2nd november 1942 the income form enrolment and examination fees is taxable. the commissioner of income-tax accepts the statement of the learned advocate-general.in these circumstances the assessment for the years in question should be made on this basis. the questions referred will be answered in the sense indicated in our two orders.there will be no order as to costs.reference answered accordingly.

Judgment:

ORDER

(The order of the Court was delivered by the Honble the Chief Justice).

The learned Advocate-General on behalf of the Bar Council states that the Council will utilize its income from investments solely for legal education and for expenses, including establishment charges, in connection therewith. In future separate accounts will be maintained for this purpose. In past years the Council have been treating the investments and income therefrom as applicable to legal education, investments. This makes it perfectly clear that the income of the Council received from investments is not taxable. As we have pointed out in our order dated the 2nd November 1942 the income form enrolment and examination fees is taxable. The Commissioner of Income-tax accepts the statement of the learned Advocate-General.

In these circumstances the assessment for the years in question should be made on this basis. The questions referred will be answered in the sense indicated in our two orders.

There will be no order as to costs.

Reference answered accordingly.