https://www.taxtmi.com/caselaws?id=7097 Damages received on termination of a mining lease were treated as capital in nature because they were linked to the loss of the source from which the assessee would have earned the tribute under the lease. The receipt had to be judged by the character of the grant and the lease terms: tribute arose only if tin was actually produced, while other payments were separately provided for use of land and removal of trees. On that basis, the damages were not a substitute for trading income but compensation for disruption of a capital asset or capital source, and were not chargeable to tax. en-us Tue, 24 Jan 1967 00:00:00 +0530 Sun, 08 Feb 2009 12:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7097 Damages received on termination of a mining lease were treated as capital in nature because they were linked to the loss of the source from which the assessee would have earned the tribute under the lease. The receipt had to be judged by the character of the grant and the lease terms: tribute arose only if tin was actually produced, while other payments were separately provided for use of land and removal of trees. On that basis, the damages were not a substitute for trading income but compensation for disruption of a capital asset or capital source, and were not chargeable to tax. Case-Laws Income Tax Tue, 24 Jan 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7097