The appellant thereafter applied to the High Court for a certificate of fitness which was granted by the High Court on February 21, 1955, and hence this appeal.
2,19,343 received by the assessee Firm from Vazir Sultan Tobacco Co., Ltd., is a revenue receipt or a capital receipt ?
Whether the sum of O. S. Rs.
The assessee then applied to the Appellate Tribunal for a reference to the High Court under sec.
The Income tax Officer C Ward Hyderabad thereupon preferred an appeal to the Income tax Appellate Tribunal, Bombay, which held that the said sum received by the assessee was a revenue receipt and liable to tax.
Appeal from the judgment and order dated November 29, 1954, of the Hyderabad High Court in Reference No.
On appeal the Appellate Assistant Commissioner held that the sum of Rs.
N. Rajagopala Sastri, B. H. Dhebar and D. Gupta, for the appellant.
V. Viswanatha Sastri, P. Rama Reddy and R. Mahalinga Iyer, for the respondents.
The High Court answered the question in favour of the assessee stating the question in a different form, viz.,
2,26,263 be made to Vazir Sultan Sons by way of companypensa tion, Vazir Sultan Sons, to pay D. B. Akki Co., out of that amount the sum of O. S. Rs.
BHAGWATI, J. This appeal with a certificate from the High Court of Judicature at Hyderabad raises the question whether the sum of Rs.
340 of 1957.
The firm was appointed the sole selling agents and sole distributors for the Hyderabad State for the cigarettes manufactured by M s. Vazir Sultan Tobacco Co., Ltd., under the terms of a resolution of the Board of Directors dated January 6, 1931.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
The Judgment of Bhagwati and Sinha, JJ.,
It does number appear that the Board of Directors passed any resolution in support of this new arrangement number was any agreement drawn up between the parties incorporating the said new ar rangement.
was delivered by Bbagwati, J. Kapur, J., delivered a separate Judgment.
In 1939 another arrangement was arrived at between the assessee and the companypany whereby the assessee was given a discount of 2 number only on the goods sold in the Hyderabad State but on all the goods sold in the Hyderabad State and outside Hyderabad State.
24 passed at the board meeting held on 6 1 31 and having reported that Vazir Sultan Sons had agreed to revert to the arrangement outlined in that resolution with effect from 1 6 50, it was on the proposition of Mr. S. N. Bilgrami, seconded by Mr. N. Chenoy resolved that payment of the sum of O. S. Rs.
66 1 of the Income tax Act and the Tribunal accordingly referred the following question of law to the High Court Whether the sum of O. S. Rs.
234/5 of 1953 54.
On June 16, 1950, the Board of Directors passed the following resolution reverting to the old arrangement embodied in the resolution dated January 6,1931 The Chairman, having referred to resolution No.
March 20.
considerably shaken.
2,19,343 was number a revenue receipt but a capital receipt being companypensation for the loss of the agency and as such number liable to tax.
