Judgement

S. R. DAS, CJI. (VENKATARAMA AYYAR, J. concurring)

In the year 1945 the respondent company (hereinafter called the "assessee") received a payment of a sum of Rs. 26,000 (rupees twenty-six thousand) from Jupiter Pictures Ltd. of Madras (hereinafter referred to as Jupiter Pictures) pursuant to the terms of an agreement between the assessee and Jupiter Pictures dated 31-10-1945. In the course of the proceedings for the assessment of the assessee s income-tax for the year 1946-47 and the excess profits tax for the chargeable accounting period from 1-4-1945 to 31-3-1946, the following question arose:-

"Whether on the facts and in the circumstances of the case, the sum of Rs. 26,000 received by the assessee from Jupiter Pictures Ltd., is a revenue receipt assessable under the Indian Income-tax Act?

The Income-tax Officer took the view that the sum was in the nature of a revenue receipt and was liable to be brought to account for purposes of calculating the tax. The Appellate Assistant Commissioner upheld this decision. On further appeal by the assessee the Income-tax Appellate Tribunal held that the case was governed by the decision of the Judicial Committee in Commissioner of Inc