https://www.taxtmi.com/caselaws?id=6172 Receipts from the sale of tree trunks cut above the stump under a clear-felling arrangement were treated as revenue receipts, not capital receipts, because the roots were left intact and regeneration was intended. The cutting method showed that the assessee did not part with the tree asset in its entirety; instead, the transaction amounted to a realisation from the produce of the land. The possibility of regeneration was decisive in distinguishing a one-time disposal of the capital asset from an income-producing operation. On that reasoning, the receipt was held liable to income-tax and the appeal failed. en-us Thu, 13 Feb 1969 00:00:00 +0530 Tue, 02 Dec 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6172 Receipts from the sale of tree trunks cut above the stump under a clear-felling arrangement were treated as revenue receipts, not capital receipts, because the roots were left intact and regeneration was intended. The cutting method showed that the assessee did not part with the tree asset in its entirety; instead, the transaction amounted to a realisation from the produce of the land. The possibility of regeneration was decisive in distinguishing a one-time disposal of the capital asset from an income-producing operation. On that reasoning, the receipt was held liable to income-tax and the appeal failed. Case-Laws Income Tax Thu, 13 Feb 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6172