TaxTMI 
TaxTMI 
1981 (9) TMI 146
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....ld relinquish all their tenancy rights of the premises No. 49/22, Generalganj, Kanpur in favour of the other six partners. It was further decided that the latter partners shall pay an ex-gratia payment of Rs. 10,000 to the assessee and Rs. 5,000 to Shri Maruti Prasad through his father and natural guardian Shri Prabhat Kumar in lieu of their surrendering tenancy rights in the above premises. It was further decided that the assessee and minor Shri Maruti Prasad would have no right to claim any interest in the tenancy right in any manner whatsoever. It was also stated in the above clause of the deed that the amounts were duly paid to the assessee and Shri Prabhat Kumar. 2. The ITO was of the view that the tenancy rights were not of a capita....
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....on he invited our attention to the order sheet entry dt. 21st Feb, 1979. He also supported his submission by referring to the decision of Allahabad High Court in Sterling Machine Tools vs. CIT (1980) 123 of ITR 181 (All). His second and main submission was that u/cl (iv) of s. 28 of IT Act, 1961 profits and gains of business or profession included the value of any benefit or perquisite whether convertible into money or not arising from business or the exercise of a profession. His submission was that the amount of Rs. 10,000 was in the nature of a benefit to the assessee arising from business and was, therefore, taxable as his income from business. His third submission was that, in any case, it was in the nature of a return of rents, and, t....