https://www.taxtmi.com/caselaws?id=180625 The High Court of Bombay ruled that damages received by an assessee for the destruction of a capital asset, a business license, were not taxable as revenue receipts. The court emphasized that compensation for loss or damage to a capital asset is a capital receipt, not a revenue receipt subject to tax. The damages were deemed to be for the destruction of the essential capital asset for income generation, distinguishing them from lost trading profits. The court referenced the Shamsher Printing Press case and rejected the tax department's argument, ultimately deciding in favor of the assessee and directing the Commissioner to bear the costs. en-us Tue, 27 Sep 1955 00:00:00 +0530 Wed, 30 Mar 2016 17:48:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=180625 The High Court of Bombay ruled that damages received by an assessee for the destruction of a capital asset, a business license, were not taxable as revenue receipts. The court emphasized that compensation for loss or damage to a capital asset is a capital receipt, not a revenue receipt subject to tax. The damages were deemed to be for the destruction of the essential capital asset for income generation, distinguishing them from lost trading profits. The court referenced the Shamsher Printing Press case and rejected the tax department's argument, ultimately deciding in favor of the assessee and directing the Commissioner to bear the costs. Case-Laws Income Tax Tue, 27 Sep 1955 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=180625