Profit-share characterisation of association receipts excluded treatment as consideration for surrender or transfer of development rights.

A 35% receipt from an association of persons was characterised as the assessee's share of profits rather than consideration for surrender or transfer of development rights. The contractual interpretation previously accepted for the association of persons in the same assessment years established that no development rights had been surrendered. The same factual finding and agreement interpretation applied to the assessee's assessments, leaving no substantial question of law. The receipt was therefore treated as profit share from the association of persons.

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Issues: Whether the assessee's 35% receipt from the association of persons constituted its share of profits or consideration arising from surrender or transfer of development rights.

Analysis: The Tribunal's interpretation of the agreement had already been upheld in proceedings concerning the association of persons for the same assessment years. That interpretation established that the assessee had not surrendered development rights and that the 35% receipt represented its share in the profits of the association. The identical factual finding and contractual interpretation applied equally to the assessee's assessments and raised no substantial question of law.

Conclusion: The 35% receipt was the assessee's share of profits in the association of persons, and not consideration for surrender or transfer of development rights; the issue is decided in favour of the assessee.

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