https://www.taxtmi.com/caselaws?id=251362 Compensation received in settlement of disputes over development rights was treated as a capital receipt because the assessee had no title or enforceable interest in the land and, at most, held a bare right to sue. A right to sue is not a transferable asset under section 6 of the Transfer of Property Act, 1882, and the payment was for surrendering the claimed right to purchase, develop, or operate the property rather than for trading income. The receipt was linked to loss of a capital advantage and impairment of the capital structure, so it was not liable to tax. en-us Fri, 05 Sep 2014 00:00:00 +0530 Fri, 12 Sep 2014 13:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=251362 Compensation received in settlement of disputes over development rights was treated as a capital receipt because the assessee had no title or enforceable interest in the land and, at most, held a bare right to sue. A right to sue is not a transferable asset under section 6 of the Transfer of Property Act, 1882, and the payment was for surrendering the claimed right to purchase, develop, or operate the property rather than for trading income. The receipt was linked to loss of a capital advantage and impairment of the capital structure, so it was not liable to tax. Case-Laws Income Tax Fri, 05 Sep 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=251362