1994 (3) TMI 88 - HC - Income Tax

Business Expenditure Fines And Penalties Income Tax Act Legal Expenses Penalty Proceedings Supreme Court

Summary

The High Court of Rajasthan ruled that the receipt of Rs. 1,00,101 was a capital receipt and not a revenue receipt, and therefore not taxable. The dispute arose from the surrender of lease rights and rights to exhibit films before the cinema was constructed. The Income-tax Appellate Tribunal's decision was upheld based on the absence of an established business. The judgment favored the assessee, with no costs awarded to the Department.