The Supreme Court in a matter of H.S Ramchandra V. CIT stated that the receipt held by the appellant as the capital receipt is now a revenue receipt as the appellant is no more on the position of secretary of the trust. The Supreme Court also boldly stated that the situation of considering receipt as a capital receipt can only be considered when the appellant is appointed as secretary of trust for a lifetime.
Facts led down in Court
During the proceeding in the court, the CIT laid down many facts in front of the court.
- The appellant was holding the position of secretary in the trust till 1996 after which new members were elected for the trust.
- The amount received by the appellant of 37,54,266 rupees which was held as revenue receipt cannot be considered as a capital receipt as he is no more on the position of the secretary of trust for this they have relied on the statement given by the appellant in 2000
- The appeal of the appellant of considering receipt as a capital receipt can only be considered if the appellant was appointed as secretary for a lifetime, but no such evidence was provided by the appellant in front of CIT or Court.
The court upheld the High Court decision
The Supreme Court bench consisting of Justices A.M. Khanwilkar and D. Maheshwari held that in this case the amount received by the appellant is of revenue in nature and it cannot be held as capital receipt. The Court stated that the appellant is no more secretary of the trust and the amount received by him is a revenue receipt, it also stated that that the situation can only be considered by the court only when he is appointed as secretary for a lifetime of the trustee but no such evidence was found. Hence, in this case, the Supreme Court upheld the decision of the High Court and led the receipt held by the appellant as revenue receipt.
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