| COURT: | Supreme Court |
| CORAM: | A. M. Khanwilkar J, Dinesh Maheshwari J |
| SECTION(S): | 4, 45, 56 |
| GENRE: | Domestic Tax |
| CATCH WORDS: | capital vs. revenue receipt |
| COUNSEL: | K. V. Mohan |
| DATE: | November 21, 2019 (Date of pronouncement) |
| DATE: | December 7, 2019 (Date of publication) |
| AY: | - |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 4/ 56: Amount received by assessee for relinquishing secretaryship of educational society cannot be treated as a capital receipt. The question of the principle of capital asset being invoked does not arise. The receipt is assessable as income from other sources. It may have been a different matter if it was a case of life time appointment of the assessee as Secretary of the concerned Institution but no such evidence was produced by the assessee (CIT vs. Ramachandra Rao 330 ITR 0322 affirmed) | |
The substance of the admission is that the appellant was holding the post of Secretary of the Institution [Paramahamsa Foundation (R) Trust] until 1996 but he left the institution after new members were elected as the managing committee. That being the case, the question of appellant invoking the principle of capital asset does not arise. It may have been a different matter if it was a case of life time appointment of the appellant as Secretary of the concerned Institution. No such evidence was produced by the appellant before the assessing officer or before us
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