HIRA LAL PHOOLCHAND Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) -

(2.) THIS is a case stated under Section 66 of the Indian Income-tax Act, by the Income-tax Appellate Tribunal. The facts are extremely simple.

(3.) THE opposite view put forward by the Income-tax Department was that the payment of the nine thousand and five hundred rupees was not a commutation of past us, and it is fair to say that they have admitted very frankly, that they themselves in the early stages of these proceedings referred to the agreement reached, not as a commutation of royalties, but as a "purchase of the copyright" of the book in question. THE line, therefore that the Department took was that the nine thousand and five hundred rupees was nothing more nor less than the consideration which was paid by the assessees for the out and out purchase of the copyright of the book, thereby, of course, putting an end to all question of royalties.