2001 (8) TMI 44

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....rred for the opinion of this court by the Income-tax Appellate Tribunal, Delhi Bench "B", Delhi (in short "the Tribunal"): "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct. in law in holding that there was no evidence on record to establish or to draw a reasonable inference that the amount of Rs.35 lakhs was received by the assessee? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that only the amount which is submitted to have been actually received by the assessee during the year can be considered without doubting that the amount actually agreed to be paid to the assessee was Rs.35 lakhs? 3. ....

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..... However, on July 29, 1999, he resiled from his statement and took the stand that the amount was generated through writing horse racing and card playing. It was further stated that a total sum of Rs.33,00,000 was settled for vacating the premises. Rs.2,00,000 were received in the shape of bank drafts. The first instalment of Rs.5,10,000 was received in cash. The Assessing Officer included Rs.35,00,000 in the income of the assessee. The amount so received was made exigible to tax as business receipt for giving up a source of income. The assessee preferred an appeal before the Commissioner of Income-tax (Appeals) (in short "the CIT(A)"). The addition was reduced to Rs.33,00,000 by the said authority. Against the said order, the assessee pref....

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.... of a source of income and, therefore, the amount was taxable. Learned counsel for the assessee, on the other hand, submitted that there was no definite material placed on record by the Revenue to show that the amount related to surrender of a source of income. On the contrary, the materials placed by the assessee clearly indicated that the amount was received for surrender of tenancy. We find that the case of the Assessing Officer was that the building was used commercially for earning profits. The agreement to vacate and receipt of money was pursuant to the stand taken before the rent control authorities that the premises were used for commercial purpose. The receipt had all the ingredients of a commercial transaction and was distingui....