Sutherland V. Commissioner Of Income Tax

1951 Present; Jayetileke C.J. and Gunasekara J.

SUTHERLAND, Appellant, and COMMISSIONER OF

INCOME TAX, Respondent .

S. C. 235-CASE STATED FOR THE OPINION OF THE SUPREME COURT

UNDER THE PROVISIONS OF SECTION 74 OF THE INCOME TAX

ORDINANCE UPON THE APPLICATION OF MRS. A. J.

SUTHERLAND, EXECUTRIX OF THE ESTATE OF R. W.

SUTHERLAND, DECEASED

Income tax-Employee of Company-Ex gratia payment made to his wife by Company after his death-Profits from employment-Income Tax Ordinance (Cap. 188), Section 6 (1) (b) and Section 6 (2) (a) (i) and (v).

S was the employee of a Company. In pursuance of a resolution passed by the board of directors of the Company shortly after S's death, a certain sum of money was paid to the appellant, who was S's widow and executrix of his estate. The evidence showed that the payment was a gift to S's widow from the Company that had been her husband's employer and that the motive for the gift was the circumstance, that it represented a sum of money that her husband " would have been entitled to if he had survived " though he died before he became entitled to it.

Held, that the payment made to S's

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