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1961 (1) TMI 11 - SC - Income TaxWhether on a proper construction of the deed of assignment dated 7th of May, 1935, and on the facts and in the circumstances of this case the Tribunal was right in holding that the sum of ₹ 77,820 represented a receipt of a revenue nature in the hands of the applicant and assessable as such ? Held that:- The appellants had, however, not sold the entirety of the rights acquired by them from the Karanpura Company. The conveyance was subject to several restrictions and the appellants retained in part rights in the land conveyed. The transaction was substantially a commercial transaction for sharing the profits of the commercial activities of the Associated Cement Ltd. The High Court was, therefore, right in holding that the transaction dated May 7, 1935, was a commercial transaction and the payment under clause (1) thereof at the rate of 13 as. per ton of cement sold was of the nature of income and not capital. Appeal dismissed.
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