TMI Blog1994 (1) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... the instance of the Revenue, the following question of law has been referred to this court for its opinion : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the sum of Rs. 21,000 being the deposit made by an intending buyer, forfeited and appropriated by the assessee, did not constitute income of the assessee and as such was not liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner found that in the sale advertisement, there was a provision to the effect that the amount deposited will be forfeited, if the intending buyer did not complete the transaction and that the amount deposited and forfeited was not capital, but casual in nature and taxable under the head "Other sources". On further appeal by the assessee to the Tribunal, it held that the receipt does not bear th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount deposited by an intending buyer came to be forfeited as he did not complete the sale. Though before the authorities below the question was whether this amount would constitute "income" or it was of not "a casual and recurring nature", etc., we are of the view that it is unnecessary to enter into a consideration of those aspects. Even as per the terms of the sale advertisement, the intendin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chitra Mandir [1985] 154 ITR 777 (AP), where it had been pointed out that compensation paid for cancellation of a contract, not affecting the trading structure of the business or resulting in the deprivation of the source of income, leaving the person free to carry on his trade, is a revenue receipt and that where the cancellation of the agreement impaired the trading structure of the assessee or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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