1996 (3) TMI 20

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....IKKACHALAM J.---In pursuance of the order passed by this court, dated April 20, 1982, the Tribunal referred the following common question for the assessment years 1974-75, 1975-76 and 1976-77 for the opinion of this court, under section 256(2) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the amount re....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s of the view that the sale of the bamboos cut and sold by the assessee could be of revenue nature and, therefore, liable to income-tax. The Commissioner of Income-tax, on appeal after going through the facts in detail, came to the conclusion that the assessee used to cut the dead and flowered bamboos, along with the bamboos grown to their optimum size. The Commissioner of Income-tax also verified....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....re not taxed as capital receipt. On appeal, the Appellate Tribunal accepted the order passed by the Commissioner of Income-tax. Before us, learned standing counsel appearing for the Department, submitted that the systematic exploitation of live bamboo clumps involves the cutting of the bamboos on their reaching the stage of optimum growth, leaving behind about a third of the length, which conti....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....onsideration, there is no sale of bamboos, which were cut when they reached their optimum growth. Since the dead and flowered bamboos were removed once for all, the sale proceeds of the same would be capital in nature. In A. K T. K M. Vishnudatta Antharjanam v. Commr. of Agrl. I.T [1970] 78 ITR 58 (SC), the Supreme Court held that the sale of the trees affected the capital structure, because by re....