https://www.taxtmi.com/caselaws?id=271001 The Authority for Advance Rulings (AAR) determined that the settlement amounts received by Aberdeen US and Aberdeen UK from Satyam and PwC are capital receipts and not taxable under the Income-tax Act, 1961. The ruling emphasized that the right to sue is a capital asset but not transferable, and its cost of acquisition cannot be determined, thus failing the computation provisions under Section 48 of the ITA. Consequently, the settlement amounts cannot be considered for capital gains tax under Section 45 of the ITA. en-us Tue, 19 Jan 2016 00:00:00 +0530 Tue, 03 May 2016 10:59:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=271001 The Authority for Advance Rulings (AAR) determined that the settlement amounts received by Aberdeen US and Aberdeen UK from Satyam and PwC are capital receipts and not taxable under the Income-tax Act, 1961. The ruling emphasized that the right to sue is a capital asset but not transferable, and its cost of acquisition cannot be determined, thus failing the computation provisions under Section 48 of the ITA. Consequently, the settlement amounts cannot be considered for capital gains tax under Section 45 of the ITA. Case-Laws Income Tax Tue, 19 Jan 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=271001