SREE HANUMAN TRADING CO Vs. COMMR OF INCOMETAX

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Cochin Bench, has referred, under S.256(2) of the Income tax Act, 1961 as directed by this Court at the instance of the assessee, the following questions of law:

(2.) The Income Tax Officer, Alleppey who was the assessing Officer brought this amount to tax rejecting the assessee's claim that being a casual receipt which did not arise from its business it was exempt from tax liability. On appeal by the assessee the Appellate Assistant Commissioner, Trivandrum confirmed the assessment agreeing with the Income tax Officer. On further appeal the Income tax Appellate Tribunal settled the following 4 questions for consideration: (1) Whether the receipt of Rs. 1,87,870/- is income, (2) Whether this is a receipt of a casual nature, (3) Whether this is a receipt of a non recurring nature, and (4) Whether this is a receipt arising from business. On question (1) the Tribunal found that it is income and on question (4) that it is a receipt arising from business. In view of these findings it did not decide questions (2) and (3). As the amount was the income of the assessee and not exempt under S.10(3) of the Income tax Act the Appellate Tribunal dismissed the appeal.

(3.) The questions under reference cover points (1) and (4) formulated by the Tribunal in the appeal and in attacking the findings of the Tribunal the twofold endeavour of counsel for the assessee was to show that the sum of Rs. 1,87,870/- was not income or business income and that in any event it was liable to be excluded being a receipt which was only of a casual and nonrecurring nature within S.10(3), Income Tax Act. The questions are interlinked and arise on the same facts and can therefore be discussed and decided together.