https://www.taxtmi.com/caselaws?id=21871 Compensation received for breach of contract was not chargeable as capital gains where the original contractual right to obtain a lease deed had already come to an end and the surviving claim was only a right to sue, which is not transferable property or a capital asset. The amount was therefore treated as compensation for breach, not consideration for transfer of a capital asset. Interest described in the consent decree as interest on compensation was a revenue receipt and, for an assessee on the mercantile system, accrued year by year; only the portion referable to the relevant previous year could be taxed in that assessment year. en-us Wed, 24 Apr 1991 00:00:00 +0530 Mon, 08 Dec 2025 15:03:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21871 Compensation received for breach of contract was not chargeable as capital gains where the original contractual right to obtain a lease deed had already come to an end and the surviving claim was only a right to sue, which is not transferable property or a capital asset. The amount was therefore treated as compensation for breach, not consideration for transfer of a capital asset. Interest described in the consent decree as interest on compensation was a revenue receipt and, for an assessee on the mercantile system, accrued year by year; only the portion referable to the relevant previous year could be taxed in that assessment year. Case-Laws Income Tax Wed, 24 Apr 1991 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21871