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1956 (3) TMI 3 - SUPREME COURT
Whether on the facts and in the circumstances of the case, the sum of ₹ 26,000 received by the assessee from Jupiter Pictures Ltd. is a revenue receipt assessable under the Indian Income-tax Act ?
Held that:- Reference made to section 10(5-A) of the Indian Income-tax Act, 1922, and urged that the language of that sub-section impliedly indicated that the sum of ₹ 26,000 (rupees twenty-six thousand) was a capital receipt id unacceptable as that sub-section was obviously introduced to prevent the abuse of managing agency agreements being terminated on payment of huge compensation and to nullify the application of the decision in Shaw Wallace's case to such cases. But that sub-section does not necessarily imply that if that sub-section were not there the kind of payment referred to therein would have been treated as capital receipt in all cases. The referred question should in our opinion have been answered in the affirmative. Appeal allowed.