https://www.taxtmi.com/caselaws?id=5941 Long-term forest leases that formed the framework of the assessee's profit-making apparatus were treated as capital assets, so compensation for their cancellation or sterilisation was capital in nature. The arrangement with the Government was an exchange or settlement, not a sale for price, so no balancing charge arose under section 10(2)(vii). Amounts received in logs, stores and livestock were referable to the capital settlement following takeover, not to trading operations, and were therefore not revenue receipts. The amount awarded for the 1953-54 year likewise represented compensation for residual lease rights, not income from timber trading, and was not taxable as income. en-us Wed, 16 Jul 1986 00:00:00 +0530 Wed, 29 Jun 2016 11:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5941 Long-term forest leases that formed the framework of the assessee's profit-making apparatus were treated as capital assets, so compensation for their cancellation or sterilisation was capital in nature. The arrangement with the Government was an exchange or settlement, not a sale for price, so no balancing charge arose under section 10(2)(vii). Amounts received in logs, stores and livestock were referable to the capital settlement following takeover, not to trading operations, and were therefore not revenue receipts. The amount awarded for the 1953-54 year likewise represented compensation for residual lease rights, not income from timber trading, and was not taxable as income. Case-Laws Income Tax Wed, 16 Jul 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5941