1983 TAX. L. R. 135 ::(1983) 33 CurTaxRep 117 ::(1983) 12 Taxman 220 ::(1983) 68 Taxation 70

Bombay High Court

Hon'ble Judge(s): Chandurkar, Kania , JJ

Income-tax Act (43 of 1961) , S.2(24), S.10(3)— Assessee receiving permanent lump sum alimony of Rs. 25,000/- and a sum of Rs. 750/- as monthly alimony - Held lump sum payment was a capital receipt but monthly payment of alimony was income in the hands of assessee and liable to tax. Held the monthly payments of alimony had their origin in a definite source, viz. the decree, they were regular in nature and the said decree was obtained by some effort on the part of the assessee. Hence these payments could never be regarded as a series of wind-falls or casual payments. It could not be contended that the decree was not the source of the payment of alimony. Whatever were the earlier rights of the assessee, her right to obtain a particular amount in lump sum and an amount of Rs. 750/- per month as alimony were definitely crystallised in the decree. It could not be said that the decree was a mere recognition or continuation of an earlier obligation. If the decree were set aside, the assessee could not claim the sum of Rs. 750/- per month from her ex-husband. If the ex-husband failed to pay the amount, it was the decree which the assessee would have to execute. The decree was the definite source of the receipts. The amount of Rs. 750/- per month was what the assessee periodically and regularly got and was entitled to get under this decree. This amount must, therefor....