1,00,301/ was a capital receipt and number revenue receipt in the hands of assessee.
His termination of the service became necessary as M s. Airways India Ltd. was acquired in pursuance of the policy of nationalization of Airways.
Two years thereafter he was appointed as the Managing Director of that companypany and he companytinued to hold that post till the termination of his services by the said companypany.
It held that the receipt in question was a capital receipt.
This amount was sought to be brought to tax by the Income tax Officer in the assessment year 1054 55 the relevant accounting year being the financial year 1953 54.
The material facts of the case are as follows The assessee, an individual, was serving M s. Airways India Ltd. as a Manager in the year 1945.
Thereafter this appeal has been brought by the Commissioner after obtaining a certificate from the High Court.
Under those circumstances the Board of Directors passed a resolution deciding to pay a sum of Rs.
60,000/ to the assessee as companypensation for termination of his services.
At the instance of the Commisssioner the question set out earlier was referred to the High Court of Calcutta for its opinion.
S. Hegde, J. The question for companysideration in this appeal by certificate is whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that the sum of Rs.
50,000/ grossed up to Rs.
