Meaning of “Casual”

Case Name :  Rm. Ar. Ar. Rm. Ar. Ar. Ramanathan chettiar Vs. Cit 

Citation : [1967] 63 ITR 458 (sc)

Court : Supreme court

Section : 10(3)

Meaning : The expression ‘casual’ has not been defined in the act and must, therefore, be construed in its plain and ordinary sense. According to the shorter oxford english dictionary, the word ‘casual’ is defined to mean : ‘(i) subject to or produced by chance; accidental, fortuitous, (ii) coming at uncertain times; not to be calculated on, unsettled’. A receipt of interest which is foreseen and anticipated cannot be regarded as casual even if it is not likely to recur again.

Case Name :  B. Malick Vs. Cit 

Citation : [1968] 67 itr 616 (all.)

Court : Allahabad high court

Section : 10(3)

Meaning : The word ‘casual’ may have several meanings. It may be something which comes in at uncertain times and something which cannot be relied upon or calculated to produce income or it may be something which is the result of chance, or the result of a fortuitous circumstance. One test which has been laid down in some cases is whether the receipt is one which is foreseen, known and anticipated and provided for by agreement. If it is a result thereof, then it cannot be described as casual even if it is not likely to recur for a considerable time.

Case Name :  Asiatic oxygen ltd. Vs. Cit 

Citation : [1991] 189 ITR 483 (cal.)

Court : Calcutta  high court

Section : 10(3)

Meaning : The word ‘casual’ means ‘(1) subject to or produced by chance, accidental; fortuitous (2) coming at uncertain times; not to be calculated on, unsettled’. A receipt which is foreseen, known, anticipated and provided for by agreement cannot be regarded as casual even if it is not likely to recur even or at least for a considerable time.

Case Name :  CIT  Vs. J.C. Wahal 

Citation : [1988] 170 itr 635 (all.)

Court : Allahabad high court

Section : 10(3)

Meaning : Casual’ means something which comes in at uncertain times and something which cannot be relied upon or calculated to produce income or it may be something which is the result of chance or the result of a fortuitous circumstance.

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