1985 (9) TMI 29

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....ly followed by the assessee, the lease amount of Rs. 2,50,000 which was receivable in 10 yearly instalments as per agreement dated November 5, 1975, was not taxable in the assessment year 1976-77 ? " M/s. Barjatya Family Charitable Trust, the assessee, was carrying on business of cinematograph film distribution during the assessment year 1976-77. The assessee entered into an agreement dated November 5, 1975, whereby it leased out the right of distribution, exhibition and exploitation in respect of various pictures mentioned in the said agreement to M/s. Rajshree Pictures Pvt. Ltd. on the terms and conditions set out in the said agreement. A supplementary agreement was arrived at on November 12, 1975, wherein the assessee disclosed the na....

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....profit amount. According to the Income-tax Officer, the provision for payment which is cleared in instalments spread over a period of ten years was merely a facility allowed by the lessor to the lessee for the payment of consideration which had assumed the character of an outstanding debt on March 1, 1976, and the transaction was completed in all respects in pursuance of the terms of the agreement dated November 5, 1975. The said order of the Income-tax Officer was affirmed in appeal by the Commissioner of Income-tax (A), Rajasthan, Jaipur, by order dated January 8, 1980. Thereafter the assessee filed an appeal before the Tribunal which was allowed by the Tribunal by order dated September 29, 1980. The Tribunal has observed that it was not ....