TMI Blog2002 (9) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... of bringing to tax in the year to which it relates? - 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the compensation for termination of the selling agreement was taxable as revenue receipts?" – Both questions also is, therefore, answered against the assessee and in favour of the Revenue. - - - - - Dated:- 4-9-2002 - Judge(s) : R. JAYASIMH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d interest on the deposit made by it in the Industrial Development Bank of India in the previous year relevant to the assessment year. The assessee received the discounted interest for the whole period by exercising an option that had been given to it. This court in the case of CIT v. A. R. Santhanakrishnan [2002] 256 ITR 187 has, in similar circumstances, held that the interest so received could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her agreement wherein it was stated that it could be in the commercial interest of the subsidiary to take over the distribution and sale of its products and, therefore, the sale agreement of April 18, 1986, was terminated by mutual consent. The agreement dated July 20, 1987, also provided for a payment of a sum of Rs. 20 lakhs to the assessee. Such payment was stated to be in consideration of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mination of the selling agreement, to carry on the distribution and sale of its products itself, which would mean that, that company would earn the profit which the assessee otherwise would have earned by the sale of the subsidiary's products. Thus, the profits on the sale of the products of the subsidiary to the extent it had been allowed to be enjoyed by the assessee was thereafter to be retaine ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
