The question (12 marks)
The statutory definition of income is inclusive and not exhaustive. Explain how the courts have fixed the width of the word, and discuss the rule that a receipt which never became the assessee's income cannot be taxed as his income. (12 marks)
MU Module I, definition of income and the vocabulary of the charge; pack ch. 01.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 1 · Foundations of Indian Tax Law of Law of Taxation.
Authorities you will need
- Sections 2(49), 2(77), 2(108), 4 and 5, Income-tax Act
- C.I.T. v. G.R. Karthikeyan
- C.I.T. v. Sitaldas Tirathdas
- Navinchandra Mafatlal v. C.I.T.
- C.I.T. v. Bhagwan Dass Jain
- Gopal Saran Narain Singh v. C.I.T., Privy Council
- Entry 82, List I, Seventh Schedule, Constitution of India
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.