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1915 Supreme(Mad) 477
IN THE HIGH COURT OF MARAS
Spencer, Phillips
Narasammal
Versus
The Secretary Of State For India In
Decided On : 28 September, 1915
The definition of 'income' under the Income Tax Act includes sums derived from a source and encompasses remittances received in a different location.
Headnote:
Income Tax - Annuity Remittances - Definition of Income
Fact of the Case:
The appellant received annuity installments in My sore Province, remitted by her agent while she was in British India.
Finding of the Court:
The court agreed with the Subordinate Judge that the remittances constituted 'income' under the Income Tax Act.
Issues: The issue was whether the remittances, after being collected by the agent, ceased to be income and whether they could be considered as 'received in British India' for taxation purposes.
Ratio Decidendi: The court interpreted 'income' as 'what comes in' and held that the remittances were indeed 'received in British India' within the definition in Section 3, Clause (5) of the Income Tax Act, making them taxable.
Final Decision: The second appeal was dismissed with costs.
1. This appellant was enjoying an annuity in My sore Province, installments of which were remitted by her agent to her while she was resident in British India.
2. We agree with the Subordinate Judge that these remittances were "income" under Part IV of Schedule II of the Income Tax Act.
3. It is argued that after collection by the agent, the money ceased to be income, that the act of the agent in receiving the money in My sore was tantamount to an act of the principal; and that having once been received in My sore, it could not again be received in British India when the agent sent it on to his principal, "income" means "what comes in", a definition which will clearly embrace sums derived from a source like this; and it is incontestable that in this case these sums were "received in British India" within the definition in Section 3, Clause (5), of the Income Tax Act and were, therefore, taxable.
4. This second appeal is dismissed with costs.
