TMI Blog1996 (3) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... April 20, 1982, the Tribunal referred the following common question for the assessment years 1974-75, 1975-76 and 1976-77 for the opinion of this court, under section 256(2) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the amount received on the sale of bamboo is only a capital receipt and hence the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could be of revenue nature and, therefore, liable to income-tax. The Commissioner of Income-tax, on appeal after going through the facts in detail, came to the conclusion that the assessee used to cut the dead and flowered bamboos, along with the bamboos grown to their optimum size. The Commissioner of Income-tax also verified the permits granted to the assessee for cutting and removing only the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the order passed by the Commissioner of Income-tax. Before us, learned standing counsel appearing for the Department, submitted that the systematic exploitation of live bamboo clumps involves the cutting of the bamboos on their reaching the stage of optimum growth, leaving behind about a third of the length, which continues growing and repeating this process periodically till the clumps die. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed their optimum growth. Since the dead and flowered bamboos were removed once for all, the sale proceeds of the same would be capital in nature. In A. K T. K M. Vishnudatta Antharjanam v. Commr. of Agrl. I.T [1970] 78 ITR 58 (SC), the Supreme Court held that the sale of the trees affected the capital structure, because by removing the roots the source from which fresh growth of trees could take p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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