https://www.taxtmi.com/caselaws?id=383159 Compensation received on cancellation of a development arrangement was treated as capital in nature where no capital asset was transferred and the assessee was left only with a mere right to sue. The analysis distinguished consideration for transfer of property rights from compensation for breach of contract, noting that the cancellation deed described the payment as refund of advance, interest, loss of profit, damages for loss of opportunity, and litigation costs. On that basis, the receipt was characterised as arising from extinguishment of a non-transferable right to sue and not as a taxable capital gain. The capital gains addition was deleted. en-us Wed, 29 May 2019 00:00:00 +0530 Fri, 22 May 2026 11:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=383159 Compensation received on cancellation of a development arrangement was treated as capital in nature where no capital asset was transferred and the assessee was left only with a mere right to sue. The analysis distinguished consideration for transfer of property rights from compensation for breach of contract, noting that the cancellation deed described the payment as refund of advance, interest, loss of profit, damages for loss of opportunity, and litigation costs. On that basis, the receipt was characterised as arising from extinguishment of a non-transferable right to sue and not as a taxable capital gain. The capital gains addition was deleted. Case-Laws Income Tax Wed, 29 May 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=383159