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Issues:
1. Challenge to the order of the Income-tax Appellate Tribunal by the Commissioner of Income-tax. 2. Assessment of capital gains tax on a lease transaction. 3. Allegation of receiving a sum of Rs. 10 lakhs by way of pakidi. Issue 1: Challenge to Tribunal Order The judgment involves a challenge by the Commissioner of Income-tax, Cochin, against the order of the Income-tax Appellate Tribunal in two separate appeals, namely ITR 134/99 and ITA 123/2000. The appeals relate to the assessment year 1989-90 and concern disputes regarding the receipt of a sum of Rs. 10,00,000 by the assessee from their tenant, as well as the applicability of capital gains tax. The Tribunal had accepted the contention of the assessees that there was no evidence of receiving the said amount, leading to the appeal by the Commissioner. Issue 2: Assessment of Capital Gains Tax The judgment delves into the interpretation of the term "capital asset" and the concept of "transfer" under the Income-tax Act, 1961. It discusses the definition of "capital asset" as property held by an assessee, and the definition of "transfer" under section 2(47) of the Act. The court analyzes whether the lease transaction in question amounts to a transfer of a capital asset, thereby attracting capital gains tax. The judgment highlights that any transaction enabling the enjoyment of immovable property constitutes a transfer under the Act, leading to the generation of capital gains upon transfer. Issue 3: Allegation of Receiving Rs. 10 Lakhs by Pakidi The judgment scrutinizes the allegation that the assessees received a sum of Rs. 10 lakhs by way of pakidi from their tenant. It discusses the arguments presented by the assessees, emphasizing that the lease deed in question did not explicitly mention such a payment. The court notes the lack of evidence supporting the alleged receipt and the absence of an opportunity for the assessees to challenge the tenant's sworn statement. Despite this, the judgment remits the matter back to the Assessing Authority for a revised assessment, allowing both parties to substantiate their contentions and ensuring compliance with principles of natural justice. In conclusion, the judgment addresses the challenges to the Tribunal's order, the assessment of capital gains tax on a lease transaction, and the allegation of receiving a sum of Rs. 10 lakhs by way of pakidi. It provides a detailed analysis of the legal interpretations and procedural aspects involved in the case, ultimately remitting the matter for further assessment in adherence to principles of natural justice.
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