https://www.taxtmi.com/caselaws?id=8117 Long-term forest leases forming part of a timber business's profit-making structure were treated as capital assets, so consideration received on surrender of the residuary rights and related logs was a capital receipt. The balancing charge provision for depreciable assets did not apply because the Burma arrangement was an exchange or transfer in kind, not a sale for money consideration. Logs received against depreciable assets, stores and livestock and later resold did not become trading stock, so the excess realisations were not revenue receipts. Compensation for the 1/3rd forest area taken over in 1948 was also capital in nature, while compensation for stores was treated as taxable. en-us Wed, 22 Apr 1970 00:00:00 +0530 Sat, 28 Mar 2009 17:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=8117 Long-term forest leases forming part of a timber business's profit-making structure were treated as capital assets, so consideration received on surrender of the residuary rights and related logs was a capital receipt. The balancing charge provision for depreciable assets did not apply because the Burma arrangement was an exchange or transfer in kind, not a sale for money consideration. Logs received against depreciable assets, stores and livestock and later resold did not become trading stock, so the excess realisations were not revenue receipts. Compensation for the 1/3rd forest area taken over in 1948 was also capital in nature, while compensation for stores was treated as taxable. Case-Laws Income Tax Wed, 22 Apr 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=8117