TMI Blog1996 (2) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... thereof was not liable to tax as capital gain - amount over and above Rs. 1,00,000 is also his income in law. It has accrued to him. It is immaterial that he chose not to recover it - - - - - Dated:- 14-2-1996 - B. P. JEEVAN REDDY. and K. S. PARIPOORNAN. JUDGMENT Heard counsel for the parties. The following three questions were stated by the Tribunal for the opinion of the High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of this court in CIT v. B. C. Srinivasa Setty [1981] 128 ITR 294 the said question must be held to have been rightly answered in favour of the assessee. So far as question No. 3 is concerned the assessee invoked clause (ii) of section 47 to contend that the said sum of Rs. 4,47,941 does not represent a capital gain. Mr. Sharma, learned counsel for the appellant-assessee, has brough ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er partners refused to agree with the said demand, the assessee filed a suit being Suit No. 72 of 1961 in the Bombay High Court for a declaration that the firm was dissolved with effect from December 31, 1960, and for accounts and other ancillary reliefs. Ultimately, the dispute was settled between the parties under a deed dated January 19, 1962. Under this deed of settlement the assessee was deem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Rs. 1,36,930. The assessee's contention was that notwithstanding the said fact, only a sum of Rs. 1,00,000 should be treated as his income. This was not agreed to by the authorities. When the matter came before the High Court, it answered the said question (No. 1) in the following words : "In view of the above discussion, the first question is answered thus on the facts and in the circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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