CIT Vs. ASHA DALMIA

JUDGEMENT

(1.) By order dated 8th January, 2004, the following substantial question of law was framed:

(2.) The assessment year in question is 1993 -94 and the respondent assessee is an individual. The question of law raised pertains to taxation of Rs.1 crore received by the assessee on surrender of tenancy rights in property No. 15, Motilal Nehru Marg, New Delhi from Bennet Coleman and Company Limited. The Assessing Officer, following the directions under Sec. 144A of the Income Tax Act, 1961 (Act, for short), held that the said amount was taxable as income from other sources. According to the Assessing Officer, as the assessee has no tenancy right to transfer, the income cannot possibly be charged under the head of "Capital Gains".

(3.) On appeal filed by the assessee, it was held that the amount received was a capital receipt but the said amount is not taxable as capital gains in view of the decision of the Delhi High Court in Bawa Shiv Charan Singh v/s. CIT, : (1984) 149 ITR 29. It was held that the said amount cannot be taxed under Sec. 10(3) of the Act. The addition made was deleted.