2024 (9) TMI 1135 - SCH - Income Tax

Nature of receipt - additions to the income of the trustees by way of excess consideration received for the sale of the rubber plantation - amounts received by the assessees as consideration for relinquishment of their trusteeship - Assessing Authority and the First Appellate Authority had found that the excess sale consideration received by the said assessees was in fact amounts towards consideration paid by the Believers Church for their relinquishment of their trusteeship in the Carmel Educational Trust and was liable to be assessed in their hands, the Tribunal, in the order impugned in these appeals, found otherwise. resignation/relinquishment by the assessees of their position as trustees As decided by HC 2024 (4) TMI 458 - KERALA HIGH COURT the resignation/relinquishment by the assessees, of their position as trustees of the Carmel Educational Trust, that too for a consideration, cannot get the imprimatur of this Court. The consideration received by them for such relinquishment cannot be treated as a capital receipt for the purposes of assessing the same under the head of capital gains. The consideration will have to be treated as the individual income of the assessees and assessed accordingly under the appropriate head. We therefore set aside the said findings in the impugned order of the appellate tribunal and remand the matter back to the tribunal to pass a fresh order on this issue in the light of our findings above - HELD THAT - In the interest of justice, we are not inclined to interfere with the impugned judgment and, hence, the special leave petitions are dismissed. Pending application(s), if any, shall stand disposed of.

Summary

The Supreme Court dismissed the special leave petitions without interference with the impugned judgment. Delay was condoned. Pending applications were disposed of.