https://www.taxtmi.com/caselaws?id=289418 A settlement payment for vacating a disputed flat and surrendering an adverse possessory claim was held not taxable as capital gains because the Income-tax Act specifically taxes only certain recognised rights, and it does not expressly bring a right acquired by adverse possession within the capital gains charging and computation scheme. The Tribunal applied the principle that a receipt cannot be taxed as capital gains unless it falls within the charging provision and can be computed under the Act. It also rejected taxation as income from other sources, holding that the sum was intrinsically linked to surrender of the possessory claim and not a separate taxable source. The addition was deleted in favour of the assessee. en-us Fri, 11 Dec 2015 00:00:00 +0530 Thu, 30 Jul 2020 09:56:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289418 A settlement payment for vacating a disputed flat and surrendering an adverse possessory claim was held not taxable as capital gains because the Income-tax Act specifically taxes only certain recognised rights, and it does not expressly bring a right acquired by adverse possession within the capital gains charging and computation scheme. The Tribunal applied the principle that a receipt cannot be taxed as capital gains unless it falls within the charging provision and can be computed under the Act. It also rejected taxation as income from other sources, holding that the sum was intrinsically linked to surrender of the possessory claim and not a separate taxable source. The addition was deleted in favour of the assessee. Case-Laws Income Tax Fri, 11 Dec 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289418