TMI Blog1971 (9) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... and for which lands were mortgaged by them in favour of the assessee, could not be considered to be revenue receipts for the assessment periods, and the assessee was liable to be taxed only on the actual realisations in cash - - - - - Dated:- 16-9-1971 - Judge(s) : A. N. GROVER. and K. S. HEGDE. FACTS OF THE CASE: The assessee is a Hindu undivided family and the appeal concerns the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpromise was passed which contained the following recitals: "This whole amount has been satisfied by the simple mortgage in favour of plaintiff's sons dated February 8, 1956." Pursuant to the terms of the compromise the mills executed a simple mortgage in favour of the sons of the karta of the assessee family on February 8, 1956, for an aggregate sum of Rs. 3,69,850 and this sum included int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... objection and upheld the Income-tax Officer's decision in the following words: "I find that in respect of the compromise with M/s. M.H. Sugar Mills Ltd., the plaintiff-Hindu undivided family was to be paid an amount of Rs. 3,69,850 inclusive of principal. It was also declared therein that the amount was paid to the Hindu undivided family by the defendant by executing the simple mortgage in favo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s year on the basis of the system of accountancy maintained by the assessee and accepted by the department. On the Commissioner's application the Tribunal referred the following question of law to the High Court: "Whether, on the facts and in the circumstances of the case, the Tribunal acted rightly in holding that the sum of Rs. 64,020 was not assessable as income of the assessee in the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration not received by the assessee but which the purchasers agreed to pay in future and for which lands were mortgaged by them in favour of the assessee, could not be considered to be revenue receipts for the assessment periods, and the assessee was liable to be taxed only on the actual realisations in cash." This decision completely covers the facts of this case. In the result this ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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