https://www.taxtmi.com/caselaws?id=184160 Question whether war-damage compensation paid in respect of assets formerly constituting HUF stock-in-trade is taxable as income; court applied the principle that partition in 1949 vested allotted shares as capital and that post-partition receipts relating to allotted shares are capital unless successors, by overt acts or systematic conduct, treated the claim as business stock-in-trade. No partition deed, partnership deed, or contemporaneous evidence showed appropriation or treatment as trading stock, and an election under a special scheme did not preclude capital character. Outcome: compensation held to be a capital receipt, not taxable as income for AY 1954-55. en-us Wed, 12 Sep 1962 00:00:00 +0530 Thu, 30 Jun 2016 18:22:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=184160 Question whether war-damage compensation paid in respect of assets formerly constituting HUF stock-in-trade is taxable as income; court applied the principle that partition in 1949 vested allotted shares as capital and that post-partition receipts relating to allotted shares are capital unless successors, by overt acts or systematic conduct, treated the claim as business stock-in-trade. No partition deed, partnership deed, or contemporaneous evidence showed appropriation or treatment as trading stock, and an election under a special scheme did not preclude capital character. Outcome: compensation held to be a capital receipt, not taxable as income for AY 1954-55. Case-Laws Income Tax Wed, 12 Sep 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=184160