https://www.taxtmi.com/caselaws?id=289413 Excess compensation received on compulsory acquisition of land held as stock-in-trade was treated as a revenue receipt chargeable as business profits. The court reasoned that "profits" means the excess of receipts over cost in the course of business, and that a receipt assumes a revenue character when it realises trading stock rather than capital. The compulsory nature of the acquisition did not change the substance of the transaction, because the amount represented realisation of stock-in-trade and not return of capital. The question was answered in favour of the Revenue, and the assessee's challenge to taxability failed. en-us Wed, 07 May 1958 00:00:00 +0530 Wed, 29 Jul 2020 15:48:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289413 Excess compensation received on compulsory acquisition of land held as stock-in-trade was treated as a revenue receipt chargeable as business profits. The court reasoned that "profits" means the excess of receipts over cost in the course of business, and that a receipt assumes a revenue character when it realises trading stock rather than capital. The compulsory nature of the acquisition did not change the substance of the transaction, because the amount represented realisation of stock-in-trade and not return of capital. The question was answered in favour of the Revenue, and the assessee's challenge to taxability failed. Case-Laws Income Tax Wed, 07 May 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289413