COMMISSIONER OF INCOME TAX" U P LUCKNOW GANGADHAR BAIJNATH Vs. MJS GANGADHAR BAIJNATH GENERAL GANG KANPUR:THE C I T

JUDGEMENT

(1.) These are connected appeals brought here on the strength of certificates granted by the High court of Allahabad. The High court was requested to give its opinion on three of the questions herein below noted:

(2.) The High court answered questions Nos. 1 and 2 in favour of the revenue and question No. 3 in favour of the assessee.

(3.) The controversy in this case is as to whether the payment of rs. 35,01,000. 00 made to the assesee under agreement dated 7/10/1946 between the Jaipuria group and the assessee group, is. a capital receipt or a revenue receipt. The tribunal has come to the conclusion that the said receipt was a capital receipt. But the High court had disagreed with that view. Under the agreement the assessee had given up its selling agency right as well as the shares in the managing agency etc. right. Clause 9 of the agreement provided as follows :