2004 (8) TMI 56

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....ed a building bearing No. 2/3, Salisbury Court, Fleet Street, London, in February, 1947. One Mr. W. H Martin was a tenant in the said building at the time of purchase and he was the assessee's representative in London. He was paying £ 25 per month which was being reimbursed by the assessee to Mr. Martin since he was representing the assessee in London. The assessee transferred the property by way of sale on February 17, 1973, to M/s. Salisbury Square Investment Trust Ltd. (hereinafter referred to as "Salisbury"). The sale was subject to the condition that Mr. Martin would continue to occupy the portion which was occupied by him earlier as a monthly tenant. The right of Mr. Martin to continue as a tenant was protected by a deed executed on ....

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....ssee. The Assessing Officer, as observed by the Tribunal, found that the assessee deducted the sum of Rs. 4,32,000 on the ground that no tax was payable as the amount was received by way of a capital receipt. The Income-tax Officer rejected this claim. Not only that, he also added a further sum of Rs. 4,32,000 being the second instalment receivable and thus added a sum of Rs. 8,64,000. The Commissioner of Income-tax (Appeals) deleted the said addition. However, while dealing with the submissions, the Commissioner of Income-tax (Appeals) noted that the amount actually belonged to Mr. Martin in his capacity as a tenant in the property and the assessee had no right to receive the same. In fact, learned counsel appearing for the assessee ....