Law: Income Tax Act, 1961

Section: 256(1),10(3)

Section 28(i) of the Income-tax Act, 1961 - Business income - Chargeable as - Assessment year 1970-71 - Assessee's business was in prospecting and working mines - Pursuant to a prospecting licence obtained in State of Gujarat, assessee carried out prospecting operations and submitted prospecting report to concerned authorities - Some time prior to submission of prospecting report, assessee filed application for grant of mining lease but same was, however, rejected - Assessee filed civil suit against State Government for refusal to grant of said mining lease - Assessee also filed writ petition when his revision petition to Government was rejected and impleaded in said writ petition Gujarat Mineral Development Corporation to whom mining lease was granted adjoining area for which assessee want - An agreement was entered into between assessee and said Corporation according to which corporation agreed to pay Rs. 3 lakhs to assessee for not pursuing civil suit and writ petition and not filing any other litigation - Whether by agreement in question parties had merely adjusted their right is under its terms and assessee had not acquired any asset, and, therefore, amount paid by corporation could not be regarded as compensation in respect of loss of an enduring asset - Held, yes - Whether since prospecting report was a preliminary report and was neither complete nor comprehensive, it could not be regarded as technical know-how on basis of which it could be said that assessee had parted with capital asset for consideration and, therefore, it was not a capital asset which had been given up - Held, yes - Whether, therefore, amount received by assessee constituted revenue receipt liable to be assessed to tax - Held, yes Section 10(3) of the Income-tax Act, 1961 - Casual and non-recurring receipt - Assessment year 1970-71 - Whether, on facts stated under heading 'Business income-chargeable as', amount received by assessee from corporation could not be said to be a casual receipt - Held, yes FACTS The assessee company was carrying on business in prospecting mines and also working mines. It had secured leases for the purpose of exploiting mines and minerals in the four States.…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492