https://www.taxtmi.com/caselaws?id=384579 An additional sum received under consent terms was treated as a capital receipt for relinquishment of a mere right to sue, not as part of the sale consideration for transfer of property. The ITAT applied the distinction between a capital asset, transfer, and a non-transferable right to sue, noting that such a right is not transferable under section 6 of the Transfer of Property Act, 1882. As the amount was not consideration for transfer and the cost of acquisition of the right could not be ascertained, the charging and computation provisions under sections 45 and 48 of the Income-tax Act, 1961 did not apply. The addition was deleted. en-us Fri, 09 Aug 2019 00:00:00 +0530 Sat, 17 Aug 2019 07:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=384579 An additional sum received under consent terms was treated as a capital receipt for relinquishment of a mere right to sue, not as part of the sale consideration for transfer of property. The ITAT applied the distinction between a capital asset, transfer, and a non-transferable right to sue, noting that such a right is not transferable under section 6 of the Transfer of Property Act, 1882. As the amount was not consideration for transfer and the cost of acquisition of the right could not be ascertained, the charging and computation provisions under sections 45 and 48 of the Income-tax Act, 1961 did not apply. The addition was deleted. Case-Laws Income Tax Fri, 09 Aug 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=384579