1999 (9) TMI 2

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....M. QUADRI. and D. P. MOHAPATRA. JUDGMENT The judgment of the court was delivered by S. P. BHARUCHA J.---These appeals have been referred to a Constitution Bench (see [1999] 236 ITR 39), to resolve the apparent conflict between the judgments of two Benches of this court, of three learned judges each, in Pingle Industries Ltd. v. CIT [1960] 40 ITR 67 (SC) and Gotan Lime Syndicate v. CI....

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....he lease deed stated "that the lessee shall deposit with the lessor by way of the guarantee for due performance of this lease deed for fifteen years, the amount equal to the rent of lease of land for the full period of lease which will be adjustable against rent of every month. This entire guarantee deposit shall not carry any interest payable to the lessee by the lessor." The lease deed granted t....

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....all ; it is a yearly payment of dead rent and royalty. It is true that if a capital sum is arrived at and payment is made every year by chalking out the capital amount in various instalments, the payment does not lose its character as a capital payment if the sum determined was capital in nature. But it is an important fact in this case that it is a case of an annual payment of royalty or dead ren....