1991 (3) TMI 97

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.... a causal receipt and tax was computable thereon under the Income-tax Act, 1961, accordingly ?" The assessee is an individual. It carries on the business of pawning and dealing in shares. The assessment year concerned is 1976-77. During the relevant previous year, the assessee received an amount of Rs. 15,000 by way of consideration for surrendering the tenancy of a godown occupied by him as a tenant. The godown belonged to Badri Prasad Agrawal who sold the same to one Smt. Navnita Chatterji. Smt. Navnita Chatterji paid the said amount to the assessee to get the premises vacated. In the return filed by him, the assessee disclosed the said amount as a capital gain. Later, however, he contended before the Income-tax Officer that it was not....

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....on 10 occurs In Chapter III which deals with "incomes which do not form part of total income". Section 10 carries the heading "Incomes not included in total income". In so far as it is relevant, section 10 reads thus : "10. Incomes not included in total income.-In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included (1) agricultural income; (2) subject to the provisions of sub-section (2) of section 64, any sum received by an individual as a member of a Hindu undivided family, where such sum has been paid out of the income of the family, or, in the case of any impartible estate where such sum has been paid out of the income of the estate belonging to ....

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....assessee that the expression "receipts" occurring in clause (3) must necessarily be revenue receipts and not capital receipts. The word "receipt" must be understood as synonymous with "income". The expression "income" has been defined in clause (24) of section 2 to include capital gains. It is precisely for this reason that proviso (i) to clause (3) of section 10 expressly excludes "capital gains chargeable under the provisions of section 45" from the ambit of the said clause. An analysis of the clause yields the following features : (i) the receipt must be of a casual and non-recurring nature ; (ii) the receipt should not be a capital gain chargeable under the provisions of section 45 ; (iii) it should not be a receipt arising from busi....