COMMISSIONER OF INCOME TAX Vs. HINDUSTAN TIMES LTD.

JUDGEMENT

(1.) THIS reference is at the instance of the Revenue for the asst. yr. 1974 -75 and the question referred to the Court is as under : "Whether, on the facts and in the circumstances of the case, the amount of Rs. 8,64,000 received by the assessee was a capital receipt -

(2.) THE brief facts of the case are required to be narrated here. The assessee purchased a building bearing No. 2/3, time of purchase and he was the assessee's representative in London. He was paying 25 per month which was being reimbursed by the assessee to Mr. Martin since he was representing the assessee in London. The assessee transferred as 'Salisbury'). The sale was subject to the condition that Mr. Martin would continue to occupy the portion which was occupied by him earlier as a monthly tenant. The right of Mr. Martin to continue as a tenant was protected by a deed premises and Salisbury agreed to pay a sum of 24,000 as compensation. There is a letter written by M/s Salisbury to Mr. Martin in this behalf. The relevant portion reads as under :

(3.) THUS , Salisbury was required to pay a total sum of 24,000 and a further sum of 24,000 as indicated hereinabove. However, it appears that the assessee received this amount and he credited this amount ( 24,000) in the P&L a/c for and similarly, it was credited in the accounts of the assessee.