COMMISSIONER OF INCOME TAX Vs. SIKKA V SMT

JUDGEMENT

(1.) THIS reference under s. 256(1) of the IT Act, 1961 (hereinafter referred to as "the Act") at the instance of the Department raises the following question of law :

(2.) THE facts briefly are these. THE reference arises out of proceedings for assessment to income-tax of Shri C. L. Sikka, an individual. THE relevant assessment year is 1959-60, the accounting period ending on March 31, 1959. THE assessee filed a return of income declaring the income to be nil. THE ITO, however, noticed that the assessee had received a payment of Rs. 1,00,000 on December 18, 1958, from M/s Urban Improvement Housing & Construction (P) Ltd. (for short called "the company") as a result of a compromise arrived at in the Court between the assessee and the company.