TMI Blog1998 (7) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... s by the assessee revenue receipts assessable to tax in the hands of the assessee for the assessment year 1968-69 ?" The assessee is an unregistered firm. The assessment initially was completed on November 1, 1971. On appeal before the Assistant Commissioner of Income-tax (Appeals), the Assistant Commissioner of Income-tax (Appeals) directed the Income-tax Officer to redo the assessment after going into all the facts regarding assessment of salami after giving the assessee an opportunity to produce the necessary evidence in support of payment of salami. While redoing the assessment as per the direction of the Assistant Commissioner of Income-tax (Appeals), the Income-tax Officer found that the assessee received Rs. 8,500 from D. S. Reddy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax (Appeals) and then finally landed before the Income tax Appellate Tribunal. It was argued before the Tribunal as well as before the appellate authority that the income received from Apsara Foot Wear, though pagadi, cannot be treated as revenue receipt but that has to be treated as only capital receipt. This contention of the assessee was rejected by the departmental appellate authority as well as the Tribunal holding that in the facts and circumstances, these receipts are advances and they are to be treated as revenue receipts. The assessee made an effort before the Tribunal requiring it to state the case and refer the question of law as formulated by it, as indicated above, to this court for opinion and thus the matter has been refer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts of this case. In this case the finding of the two forums, i.e., assessing authority as well as the lower appellate authority, is that the assessee was collecting lesser rents from the tenants though the rents at that point of time from the neighbouring areas were higher. The finding further goes to show that the amount so collected was in the nature of advance and, therefore, the assessing authority as well as the lower appellate authority found that the salami amount received by the assessee from Apsara Footwear is only an advance and has to be treated as revenue receipt. As indicated above, on a careful consideration, we have no doubt in our mind to reach such conclusion and hold that the amount received by the assessee from Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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