SHRI CHATRASINGHJI KESARI SINGHJI THAKORE vs COMMISSIONER OF INCOME-TAX, BOMBAY

The Supreme Court held that the amounts paid by the Syndicate to the appellant as 'Local Fund Cess' were taxable under the Indian Income-tax Act, as they constituted income. The Court clarified that the appellant was not an agent of the Government for recovering the cess, and the excess payments made by the Syndicate were akin to rents and royalties. The Court affirmed that the Revenue authorities could determine the quantum of local fund cess payable by the appellant during assessment proceedings, and the potential for refund by the Syndicate did not negate the taxability of the received amounts.