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TMI Blog1998 (11) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... 991-92 by the first respondent which amount had been retained by the Department by invoking section 44AC of the Act as it stood then. The validity of the said provision was upheld by the Supreme Court in the case of Union of India v. A. Sanyasi Rao [1996] 219 ITR 330, except to the extent, the non obstante clause in section 44AC excluded the provisions of sections 28 to 43C. The assessee is enti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e forest produce is mentioned in the Table and the right exercised by the petitioner in relation to that forest produce is a right which the petitioner acquired by becoming the successful bidder in the auction. According to the petitioner what was sold at the auction was a right to gather the forest produce, and that the right to gather is not the same thing as a right to receive as there have to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proved by the Supreme Court in the case of Mahadeo, AIR 1959 SC 735. The Privy Council in the case of Mohanlal Hargovind [1949] 17 ITR 473 observed that : "The contracts grant no interest in land and no interest in the trees or plants themselves. They are simply and solely contracts giving to the grantees the right to pick and carry away leaves, which, of course, implies the right to appropriate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trading in certain goods. One of the items of the goods specified is forest produce. The transfer of title in the forest produce from one person to another in the course of trade is, therefore, to be governed by this provision. It covers not only the actual sale of goods but also the right to receive the goods of the nature specified in the table including forest produce. The word "receive", ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondents, however, shall apply sections 28 to 43C and only thereafter retain with them such part of the amount now retained as they may be found entitled to after computing the profits and gains in accordance with sections 28 to 43C of the Income-tax Act. The petition is disposed of accordingly. Consequently, no order is necessary in W. M. P. No. 23912 of 1995. - - TaxTMI - TMITax - In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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