https://www.taxtmi.com/caselaws?id=193426 Payment made to escape an agreement to purchase immovable property was treated as compensation or damages for non-fulfilment of the contract, not as a loss arising from a sale, exchange, relinquishment or transfer of a capital asset. The analysis held that the assessee had not acquired and then disposed of property rights at a loss; instead, it paid the difference between the agreed purchase price and the amount received from the ultimate purchasers to be relieved of the obligation to buy. On that reasoning, the claimed loss did not fall within the capital gains provisions of the Income-tax Act, 1922, and the claim to capital loss failed. en-us Tue, 30 Jun 1959 00:00:00 +0530 Fri, 28 Jul 2017 18:40:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=193426 Payment made to escape an agreement to purchase immovable property was treated as compensation or damages for non-fulfilment of the contract, not as a loss arising from a sale, exchange, relinquishment or transfer of a capital asset. The analysis held that the assessee had not acquired and then disposed of property rights at a loss; instead, it paid the difference between the agreed purchase price and the amount received from the ultimate purchasers to be relieved of the obligation to buy. On that reasoning, the claimed loss did not fall within the capital gains provisions of the Income-tax Act, 1922, and the claim to capital loss failed. Case-Laws Income Tax Tue, 30 Jun 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=193426