1983 (3) TMI 13

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.... five cases, the following common question of law has been referred to this court under s. 256(2) of the I.T. Act, 1961 : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the receipts from clearing the forest trees for planting the cleared area with plantations and the sale proceeds of timber logs of such felled trees would on....

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....ated July 31, 1965, the managing partner of the assessee-firm entered into an agreement with one A. Sulaiman for clearing the forest for raising cardamom, coffee, tea, rubber plantations and betel nuts at varying rates per acre depending upon the situation of the land. The agreement also provided for the period during which the clearance has to be made by the contractor. Similar agreements have al....

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....he assessee took the matter on appeal, and the Revenue took the matter in appeal in respect of the fifth year of assessment. The Tribunal having heard the rival contentions of both the parties held that all the receipts in these cases are only realisation of capital and they cannot be treated as revenue receipts. The Tribunal also referred to the terms of the partnership to find out the intenti....

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....hat as per the agreement, even the roots are to be cleared. On the basis of the affidavits filed by the contractor, the assessee and the officials of the Department, the operation of clearance was done only for the purpose of making the land fit for plantation purpose. Having regard to the object for which the clearance of the trees was effected, the receipts by the assessee from the contractor ca....