9911796707
TMI Blog1986 (1) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 of the Income-tax Act, 1961 (" the Act "), the Income-tax Appellate Tribunal, Bangalore Bench, Bangalore (" the Tribunal "), at the instance of the Revenue, has referred the following two questions of law for the opinion of this court: " (1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in holding that the amount of compensation received by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 11, 1964, one Smt. Vengadammal who had become the owner of the said property entered into an agreement of sale of the aforesaid property with a firm called " Madras Property Development Company " to which the assessee was also a party. Under the said agreement, the assessee had to receive a sum of Rs. 1,34,400 in monthly instalments of Rs. 1,400 for a period of eight years as compensation or as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid receipt was a capital receipt. Aggrieved by the said order of the Appellate Assistant Commissioner, the Revenue filed a second appeal before the Tribunal which by its order dated October 7, 1978, dismissed the same also declining the alternative plea of the Revenue to subject the receipts to capital gains tax under the Act. Hence, this reference by the Revenue. We will examine the questions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion and bearing in mind the correct legal principles, the Tribunal had found that the amounts received by the assessee, for surrendering the leasehold rights for the remaining period, were in the nature of compensation and was, therefore, a capital receipt. In reaching that conclusion, the Tribunal had kept before it the well-settled legal principles for determining whether a receipt was a capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irmative. In the light of our above discussion, we furnish our answers to the questions referred to us as hereunder: Question Answer Question No. 1 In the affirmative, against the Revenue and in favour of the assessee. Question Answer Question No. 2 In the affirmative, against the Revenue and in favour of the assessee. But, in the circumstances of the case, we direct the parties to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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