- (1.) This appeal is directed against the order passed by the learned single judge whereby the learned single judge, by his order dated August 5, 1993, has quashed the show-cause notice issued by the Commissioner of Income-tax under section 263 of the Income-tax Act, 1961. Aggrieved by that order, the present appeal has been preferred.
(2.) It is not necessary to go into the detailed facts. Suffice it to say, a question of law has arisen as to whether the money which has been received by the assessee for surrendering his tenancy right can be considered to be capital gains or not ?
(3.) The brief facts which are necessary for disposal of this appeal are that the assessee received a sum of Rs. 21,30,000 from Shaw Wallace Company as compensation on surrendering his monthly tenancy. The said tenancy was a capital asset of the assessee and no cost was incurred for its acquisition. In the assessment proceedings, the Assessing Officer held that the said sum could not be assessed to tax since there was no cost of acquisition of the said monthly tenancy. However, the Commissioner of Income-tax issued a notice under section 263 of the Act to the effect that the order passed by the Assessing Officer was prejudicial to the interests of the Revenue. Therefore, he exercised revisional power and issued show-cause notice.;