https://www.taxtmi.com/caselaws?id=358510 Compensation received on cancellation of development agreements was treated as a capital receipt because no actual development took place and no enforceable transfer of ownership in the land occurred. The receipt was attributable to surrender of the assessee's contractual and pre-emptive rights, not to trading profits, and the agreements did not amount to part performance creating a taxable transfer. The Tribunal also rejected the allegation of a colourable device, holding that accounting treatment and advance purchase of stamp papers did not govern taxability. The compensation was therefore not taxable as business income or capital gains, and the addition was deleted. en-us Tue, 29 Aug 2017 00:00:00 +0530 Fri, 13 Apr 2018 10:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=358510 Compensation received on cancellation of development agreements was treated as a capital receipt because no actual development took place and no enforceable transfer of ownership in the land occurred. The receipt was attributable to surrender of the assessee's contractual and pre-emptive rights, not to trading profits, and the agreements did not amount to part performance creating a taxable transfer. The Tribunal also rejected the allegation of a colourable device, holding that accounting treatment and advance purchase of stamp papers did not govern taxability. The compensation was therefore not taxable as business income or capital gains, and the addition was deleted. Case-Laws Income Tax Tue, 29 Aug 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=358510