<h1>Karnataka High Court: Income from Surrender of Leasehold Rights in Hotel Business Classified as Capital Gains, Not Business Receipts.</h1> The Karnataka High Court ruled that income from the surrender of leasehold rights in a hotel business, which was sub-leased and not directly operated by the assessee, should be classified as capital gains rather than business receipts. The court determined that this income is not taxable as capital gains since no costs were involved in acquiring the leasehold rights. Additionally, the court clarified that such income should not be assessed under 'Income from other sources' unless explicitly provided for in the tax legislation.