9911796707
|
Home
Issues Involved:
1. Whether the amount of Rs. 15,083 received by the assessee was part of the consideration of the sale and not a revenue receipt. 2. Whether the amount of Rs. 10,214 was rightly held to be not assessable in the assessment year 1960-61. Summary: Issue 1: Consideration of Sale vs. Revenue Receipt The primary question was whether the sum of Rs. 15,083 received by the assessee was part of the sale consideration or a revenue receipt. The court examined the terms of the sale deed executed on January 25, 1959. The sale deed explicitly stated that the aggregate price for the properties sold was Rs. 2,28,442.80, and any interest paid was due to the deferment of payment by the purchaser. The court concluded that the interest amount of Rs. 15,083 was not part of the sale consideration but was a revenue receipt due to the purchaser's inability to pay the price on May 1, 1958. Thus, the amount of Rs. 15,083 was considered a revenue receipt and not part of the sale consideration. Issue 2: Assessment Year for Interest Amount The second issue was whether the amount of Rs. 10,214 was assessable in the assessment year 1960-61. The court noted that the assessee maintained accounts on a financial year basis, and the relevant financial year for the assessment year 1960-61 was April 1, 1959, to March 31, 1960. Since the interest amounts were received on July 31, 1958, and January 27, 1959, they fell within the financial year 1958-59. Therefore, the court held that the entire amount of Rs. 15,083 was assessable in the assessment year 1959-60 and not in the assessment year 1960-61. Conclusion: - Question 1: The amount of Rs. 15,083 received by way of interest was not part of the consideration of sale but was a revenue receipt. - Question 2: The amount of Rs. 10,214 was not assessable in the assessment year 1960-61, but the whole amount of Rs. 15,083 was assessable in the assessment year 1959-60. Each party was ordered to bear its own costs.
|
