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TMI Blog1996 (8) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in CIT/CEPT v. Shamsher Printing Press [1960] 39 ITR 90 ? (ii) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal having held that tenancy right is not goodwill was justified in following the decision of the Delhi High Court in Bawa Shiv Charan Singh v. CIT [1984] 149 ITR 29 ? (iii) Whether, on the facts and in the circumstances of the case, the amount received for surrender of tenancy right is a revenue receipt liable to tax ? (iv) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that the cost of leasehold right is incapable of valuation and consequently tax cannot be imposed on the amount in view of the decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld have expressed itself with greater clarity. Those, however, do not involve any questions of law and hence there is nothing for this court to answer in so far as those two questions are concerned. Now, in order to examine questions Nos. 3 and 4, it would be apposite to briefly narrate the material facts from which these questions arise. The assessee used to deal with the retail sale and purchase of cloth. In the year preceding the assessment year in question (1985-86), the business was in the process of winding up and the assessee was, therefore, engaged only in the sale of the left over stock. The Assessing Officer noticed that the capital account of the two partners showed an addition of a sum of Rs. 95,000 in cash which was described ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, therefore, it could not be said that it was an income from undisclosed source. It was then contended on behalf of the Revenue that this receipt, in view of the Supreme Court decision in CIT/CEPT v. Shamsher Printing Press [1960] 39 ITR 90 should be held to be a revenue receipt in the hands of the assessee and, therefore, liable to be added to its income for imposition of tax. The Tribunal did not accept this contention either and declined to interfere in the matter. It also rejected an application under section 256(1) of the Act filed on behalf of the Revenue for making a statement of the case and referring the questions of law proposed therein to this court. Finally, on an application made by the Revenue under section 256(2) of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se to capital gain. The facts of the case relied upon by Mr. Sharan are quite different and the Supreme Court's decision in that case, therefore, has no application to the facts of the present case. Mr. Rastogi, learned counsel appearing on behalf of the assessee invited our attention to a Karnataka High Court decision in CIT v. Joy Ice Creams (Bangalore) Pvt. Ltd. [1993] 201 ITR 894. The facts of the Karnataka case were very similar to the facts of the case in hand and that decision appears to us to apply to this case with full force. In the Karnataka case, the Appellate Tribunal had found that a sum of Rs. 45 lakhs received by the assessee "was a recompense for relinquishing all the rights the assessee had in the tenanted property" '. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may contribute to the good will of the business carried on in it by the tenant ; but in many cases, the premises may not have a particular value due to the goodwill gained by the tenant, in his business. The transfer of interest by the tenant to a third party may be prohibited by law, as in the case of sections 21(1)(f) and 23 of the Karnataka Rent Control Act, 1961 ; however, there may not be a bar against surrendering the said interest to the landlord ; in the case of surrender to the landlord, the value of the interest surrendered cannot be compared to the value it would have fetched in case a general transfer is permitted. In the absence of a specific statutory provision providing for measuring the profit or gain accruing to an erstwh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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