https://www.taxtmi.com/caselaws?id=339093 The Income Tax Appellate Tribunal (ITAT) held that liquidated damages received by the assessee, directly linked to the sale of equity shares, should be treated as capital receipts, not revenue receipts. The ITAT criticized the First Appellate Authority (FAA) for not providing a reasoned order and reversed the decision in favor of the assessee, emphasizing the importance of considering the nature of damages linked to a capital asset. The ITAT allowed the appeal filed by the assessee, concluding that the compensation received due to the purchaser's non-performance should not be taxed as revenue receipt. en-us Wed, 15 Feb 2017 00:00:00 +0530 Sat, 18 Feb 2017 14:49:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=339093 The Income Tax Appellate Tribunal (ITAT) held that liquidated damages received by the assessee, directly linked to the sale of equity shares, should be treated as capital receipts, not revenue receipts. The ITAT criticized the First Appellate Authority (FAA) for not providing a reasoned order and reversed the decision in favor of the assessee, emphasizing the importance of considering the nature of damages linked to a capital asset. The ITAT allowed the appeal filed by the assessee, concluding that the compensation received due to the purchaser's non-performance should not be taxed as revenue receipt. Case-Laws Income Tax Wed, 15 Feb 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=339093