Transfer-pricing benchmarking and capital-receipt principles sustained taxpayer relief, while unsupported property-advance write-offs remained disallo...
Pre-existing operational debt disputes require genuine evidence, while undirected running-account payments may be appropriated on a first-in-first-out...
Agency in CNG distribution makes outlet operators commission agents, rendering taxable Business Auxiliary Service rather than purchasing goods for res...
ITAT held that amounts received by the assessee pursuant to a final settlement agreement/arbitral award, whereby the assessee relinquished a claim/right to sue, constitute a capital receipt and are not taxable as capital gains. The Tribunal found that the CIT(A) erred in characterising the payment as salary, business income, or short-term capital gain rather than a capital receipt akin to long-term capital nature. Consequently, the order of the CIT(A) was set aside and the additional ground of appeal allowing the capital receipt characterization was allowed, resulting in relief to the assessee from income tax assessment on the settlement proceeds.
ITAT held that amounts received by the assessee pursuant to a final settlement agreement/arbitral award, whereby the assessee relinquished a claim/right to sue, constitute a capital receipt and are not taxable as capital gains. The Tribunal found that the CIT(A) erred in characterising the payment as salary, business income, or short-term capital gain rather than a capital receipt akin to long-term capital nature. Consequently, the order of the CIT(A) was set aside and the additional ground of appeal allowing the capital receipt characterization was allowed, resulting in relief to the assessee from income tax assessment on the settlement proceeds.
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