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Issues involved:
The issues involved in this case are the taxability of the amount received by the assessee from M/s. Bharat Stores Ltd., Agra, whether it should be treated as interest, capital gains, or forfeiture of earnest money, the admissibility of fresh evidence in the form of a subsequent agreement dated November 15, 1967, and the correctness of setting aside the AAC's order dated December 14, 1976. Taxability of Amount Received: The assessee purchased a plot of land and entered into an agreement for its sale with M/s. Bharat Stores Ltd. Agra. The purchasers failed to pay the earnest money or purchase price within the stipulated period but later assigned decrees to the assessee. The Revenue contended that the amount received by the assessee was assessable as her income. The Appellate Tribunal allowed the assessee to produce a modified agreement dated November 15, 1967, raising the consideration for the land. The Tribunal directed a fresh assessment based on this new agreement, which was later adjusted by an arbitration award. The Revenue challenged this decision, questioning the tax treatment of the amount received. Admissibility of Fresh Evidence: The Revenue objected to the Appellate Tribunal admitting the subsequent agreement dated November 15, 1967, as fresh evidence, as it was not produced before the lower authorities. The Tribunal justified its decision by stating that additional evidence was crucial for deciding the issue and in the interest of justice. Citing relevant rules and case law, the Tribunal exercised its discretion to allow the new agreement. The High Court upheld the Tribunal's decision, emphasizing the Tribunal's role as the final fact-finding body and its authority to consider additional evidence if deemed necessary for a just decision. Setting Aside AAC's Order: The Appellate Tribunal set aside the AAC's order dated December 14, 1976, based on the new agreement introduced by the assessee. The Tribunal directed a fresh assessment considering the revised terms of the agreement. The Revenue questioned the correctness of this decision, arguing that the Tribunal erred in allowing the new evidence and in overturning the AAC's order. The High Court's response to this issue was dependent on its decision regarding the admissibility of the fresh evidence, indicating that further enquiry by the authorities below would be necessary to address the consequential questions. In conclusion, the High Court upheld the decision of the Appellate Tribunal to admit the subsequent agreement as fresh evidence, leading to the setting aside of the AAC's order and the direction for a fresh assessment. The Court emphasized the Tribunal's discretion in considering additional evidence for a just decision and ruled in favor of allowing the new agreement. The consequential questions regarding the taxability of the amount received and the correctness of setting aside the AAC's order would be addressed in the fresh enquiry as directed by the Tribunal.
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