9911796707
TMI Blog2003 (3) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... consideration of Rs. 1,45,000 towards lease consideration received by the assessee only a sum of Rs. 29,000 is to be assessed for the assessment year 1986-87?" - This question is answered against the assessee and in favour of the Revenue. - - - - - Dated:- 31-3-2003 - Judge(s) : R. JAYASIMHA BABU., K. RAVIRAJA PANDIAN. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J.-The assessment years are 1985-86 and 1986-87. Two questions have been referred, one of which is common to both the assessment years. That question is: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law and had valid materials in holding that gifts made by the producers to the children of the assessee c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibutors for distribution of films which he had taken on lease. Though the agreements provided for the payment of the agreed consideration, they contained a clause providing that part of the amount so paid was to be adjusted against the lease rental for the next five years. The assessee claimed that only the amount to be adjusted in each year should be treated as income of that year. Those agreements did not cast any obligation on the assessee but only required the lessee to subject itself to certain restrictions. There was no clause for termination in that agreement and the lessor was only given a right to claim damages from the lessee in the event of the lessee committing breach of any of the terms. The Assessing Officer, therefore, held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use it falls within an exemption provided by the Act, lies upon the assessee." The position under the 1961 Act is no different. In this case, the receipt of the gift is not by the assessee but by his children. The amount was received by them as gift on which gift-tax has been paid and that payment has been accounted for in the books of the donor as also the donees. The Tribunal has observed thus: "It is also seen that the persons who made these gifts are verifiable. Further, all these gifts were made to the donees by way of cheques and the donees have realised the gifted amounts through their Individual bank accounts. Also it is seen that the donees have disclosed the amounts covered by these gifts in their individual assessments." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on in the hands of the producers. All these circumstances go to show that the gifts made by the producers to the assessee's children were not in consideration for the services rendered by the assessee as an artiste." We do not find any error in the reasoning of the Tribunal. We uphold the same. The common question referred for these two assessment years is, there fore, answered against the Revenue and in favour of the assessee. So far as the second question for the assessment year 1986-87 is concerned, as already noticed, the amounts received by the assessee were under an agreement. The amount received was the whole of the amount payable under the agreement although the agreement also contains a clause that part of the amount so handed ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
