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PETITIONER: THE COMMISSIONER OF INCOME-TAX, PUNJAB
Vs.
RESPONDENT: SHRI THAKUR DAS BHARGAVA, ADVOCATE, HISSAR.
DATE OF JUDGMENT: 27/07/1960
BENCH: DAS, S.K. BENCH: DAS, S.K. HIDAYATULLAH, M. SHAH, J.C.
CITATION: 1960 AIR 1219 CITATOR INFO : E 1977 SC1343 (6)
ACT: Income Tax--Professional income--Lawyer accepting case on condition of clients’ Paying money for charity--Money Paid to lawyer and charitable trust created--Whether amount received is Professional income.
HEADNOTE: The assessee, an advocate, accepted a case on condition that the clients would provide him with Rs. 40,000 for charitable purposes and that he would create a public charitable trust with the money. The clients gave the assessee Rs. 32,500 and he created a trust therewith. The assessee claimed that the said amount of Rs. 32,500 was not his professional income as the amount had been given to him in trust for charity. Held, that the said amount was the professional income of the assessee and was liable to income-tax. At the time when this money was paid to the assessee no trust or obligation in the nature of trust was created. The clients who paid the money did not create any trust nor imposed any legally enforceable obligation on the assessee. The money when it was received by the assessee was his professional income though he had expressed a desire earlier to create a...