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TMI Blog1986 (1) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Appellate Tribunal, Bangalore Bench, Bangalore (" the Tribunal "), at the instance of the Revenue, has referred the following two questions of law for the opinion of this court: " (1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in holding that the amount of compensation received by the assessee for surrendering its leasehold right for the remai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wner of the said property entered into an agreement of sale of the aforesaid property with a firm called " Madras Property Development Company " to which the assessee was also a party. Under the said agreement, the assessee had to receive a sum of Rs. 1,34,400 in monthly instalments of Rs. 1,400 for a period of eight years as compensation or as premium. For the assessment year 1971-72 relevant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said order of the Appellate Assistant Commissioner, the Revenue filed a second appeal before the Tribunal which by its order dated October 7, 1978, dismissed the same also declining the alternative plea of the Revenue to subject the receipts to capital gains tax under the Act. Hence, this reference by the Revenue. We will examine the questions in the order in which they are referred to us. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ples, the Tribunal had found that the amounts received by the assessee, for surrendering the leasehold rights for the remaining period, were in the nature of compensation and was, therefore, a capital receipt. In reaching that conclusion, the Tribunal had kept before it the well-settled legal principles for determining whether a receipt was a capital receipt or revenue receipt. The fact that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, we furnish our answers to the questions referred to us as hereunder: Question Answer Question No. 1 In the affirmative, against the Revenue and in favour of the assessee. Question Answer Question No. 2 In the affirmative, against the Revenue and in favour of the assessee. But, in the circumstances of the case, we direct the parties to bear their own costs. - - TaxT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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