https://www.taxtmi.com/caselaws?id=151725 Mesne profits for wrongful possession and deprivation of use of immovable property are characterised as compensation for injury to capital rather than income from property where competing judicial views permit the interpretation favourable to the assessee. Such mesne profits are therefore treated as capital receipts not chargeable to tax. Interest awarded on mesne profits up to the date of decree forms part of the capital compensation, whereas interest accruing thereafter is revenue in nature. The Supreme Court ruling in P. Mariappa Gounder addressed only the year of accrual of mesne profits and did not determine their capital or revenue character; a judgment binds only on issues actually decided. en-us Wed, 20 Feb 2008 00:00:00 +0530 Wed, 17 Apr 2024 17:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=151725 Mesne profits for wrongful possession and deprivation of use of immovable property are characterised as compensation for injury to capital rather than income from property where competing judicial views permit the interpretation favourable to the assessee. Such mesne profits are therefore treated as capital receipts not chargeable to tax. Interest awarded on mesne profits up to the date of decree forms part of the capital compensation, whereas interest accruing thereafter is revenue in nature. The Supreme Court ruling in P. Mariappa Gounder addressed only the year of accrual of mesne profits and did not determine their capital or revenue character; a judgment binds only on issues actually decided. Case-Laws Income Tax Wed, 20 Feb 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=151725