Revenue receipt treatment turned on business-linked assignment payments tied to profits, royalty, and sales activity.

A receipt under a deed of assignment was treated as revenue income because the transaction had to be viewed as a whole from a business and accountancy perspective. The arrangement was not an outright sale for a fixed gross sum, and no capital sum was contemplated or ascertainable. Instead, the consideration depended on a share of profits, a share of royalty, and payments linked to cement sold, all connected with the transferee's trading activity. As the assessee continued its business and turned its assets to account for business purposes, the resulting periodic receipts were held to be of an income character and assessable as revenue receipt.

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Issues: Whether the sum of Rs. 77,820 received by the assessee under the deed of assignment dated 7 May 1935 was a revenue receipt assessable to tax or a capital receipt.

Analysis: The receipt had to be judged from a business and accountancy point of view by looking at the transaction as a whole. The deed was not an outright sale for a fixed gross sum; no capital sum was contemplated or ascertainable. The consideration consisted of a share of profits, a share of royalty, and an amount calculated by reference to cement sold, all of which were tied to the transferee's trading activity. The arrangement showed that the assessee, while continuing its business, turned its assets to account for business purposes and secured periodic receipts of an income character.

Conclusion: The sum of Rs. 77,820 was a revenue receipt and was rightly assessed as income, in favour of the Revenue.

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