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. (BP 1-4-1990-14-07-2000) ( CA 8594/2010, dt. 21. 11. 2019)
H. S. Ramchandra Rao v. CIT ( 2019) 419 ITR 480/ 311 CTR 945 / 184 DTR 305/( 2020) 269 Taxman 372 SC) www.itatonline.org Editorial : Order in CIT v. Ramachandra Rao (2011) 330 ITR 322 (Karn.) (HC) is affirmed)
S. 56 : Income from other sources – Capital or revenue-Amount received for relinquishing secretaryship of educational society cannot be treated as a capital receipt-Assessable as income from other sources. [S. 4, 45]