TMI Blog2000 (5) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... vs. CIT (1985) 47 CTR (Del) 12 : (1984) 149 ITR 29 (Del). (2) That the findings of the learned CIT(A) that the receipt in question is taxable as casual and non-recurring receipt under s. 10(3) and the provisions of ss. 2(24) and 45 of the Act are inapplicable in respect of such receipt, is totally misconceived and is based upon incorrect interpretation of the relevant provisions of law. (3) That the further finding recorded by the learned CIT(A) that the amount received by the assessee has got the character of income and that the Revenue has established that the receipt is taxable and represented as casual income under s. 10(3) of the Act, is totally misconceived and is not based on valid material on record. (4) That the learned CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rity Rs. 15 lakhs for surrender of tenancy of my premises 16A/8, W.E.A. Karel Bagh,New Delhi. Vide bank drafts Rs. 1 lakh, vide D.D. No. 004354 of Bank of Baroda, New Delhi, Rs. 9 lakhs vide D.D. No. 585708 and Rs. 5 lakhs vide D.D. No. 585709 dt.27th Dec, 1990, of Punjab National Bank,Delhideposited with Andhra Bank, Karol Bagh,New Delhi." The assessee was called upon by the AO to justify the claim of exemption relating to the receipt of Rs. 15 lakhs received on the surrender of tenancy rights. It was explained by the assessee in the course of hearing of the case that the assessee was a tenant in the property i.e., 16A/8 W.E.A. Karol Bagh,New Delhisince, 1946. It was clarified that for taking the premises on rent, there was only an oral ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... him the details of the amount spent in respect of the renovation, repairs and maintenance of the said property. Pursuant thereto the AO came to the finding that the receipt in question can be taxed as casual and non-recurring receipt, if not under the head 'capital gain'. For bringing the said receipt under the ambit of taxability as causal and non-recurring receipt, the AO has dwelt upon, in details, the essential ingredients of s. 10(3) in the assessment order. In addition, the AO has also analysed the connotation of the word 'income' and held that even if a receipt does not fall within the ambit of any sub-clause of s. 2(24) of the Act, it, may still be the income if it partakes the characteristics of income. He, accordingly, concluded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... head. The learned counsel in this regard relied heavily on the decision of Hon'ble Supreme Court in the case of Nalini Kant Amba Lal Modi vs. CIT (1966) 61 ITR 428 (SC). While assailing the stand of the Revenue, the learned counsel for the assessee summed up his arguments as under: "(i) All receipts are not income as held by the Supreme Court in Parimisetti Setharamamma vs. CIT (1965) 57 ITR 532 (SC). In the instant case, the amount has been received under an agreement in lieu of providing an alternative accommodation at the instance of the landlord and the said amount has been realised for the aforesaid purpose. (ii) The judgment of the Supreme Court in the case of the CIT vs. G.R. Kartikeyan (1993) 112 CTR (SC) 302 : (1993) 201 ITR 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eipt under the head "casual and non-recurring" as in CIT vs. Gulab Chand (1992) 101 CTR (All) 226 : (1991) 192 ITR 495 (All) is not correct stand and the same has been dissented to by Calcutta High Court in B.K. Roy (P) Ltd. vs. CIT Ors. (1995) 125 CTR (Cal) 50 : (1995) 211 ITR 500 (Cal). The learned counsel further tried to contend that the assessee by virtue of living in the said premises for more than 40 years, acquired statutory rights and any transfer of statutory rights would lead to the taxability under the head "capital gains" only. It was thus urged that the addition of Rs. 15 lakhs merits deletion. 4. The learned CIT(A) while considering the submissions of the learned counsel for the assessee, case law as cited and relevant pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eting the addition made by the AO and confirmed by the learned CIT(A). It was also submitted that issue as involved in this case is squarely covered by the decision of Special Bench of the Tribunal in the case of J.C. Chandiok vs. Dy. CIT (1999) 64 TTJ (Del) (SB) 1 : (1999) 69 ITD 75 (Del)(SB) which has been followed in number of decisions including in ITA No. 6454/Del/1993 for the asst. yr. 1990-91 in the case of Asstt. CIT vs. Bhardwaj Bhardwaj Associates (P) Ltd. vide ITAT Delhi Bench 'C's order dt.11th Jan., 2000. Therefore, appeal of the assessee is to be accepted. 6. The learned Departmental Representative while relying upon the reasoning and basis given by the authorities below, had pleaded for confirming the order of the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X
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