https://www.taxtmi.com/caselaws?id=291284 Mesne profits awarded for wrongful possession and deprivation of the use and occupation of immovable property are characterised as compensation rather than consideration under an original business arrangement. A Supreme Court ruling confined to the year in which mesne profits are taxable does not determine whether those receipts are capital or revenue; merger applies only to issues directly decided. Where conflicting High Court views exist and no jurisdictional authority governs, the view favourable to the assessee may be preferred. Mesne profits are therefore treated as capital receipts not chargeable to tax, and interest awarded up to the decree date forms part of that compensation and is likewise capital in nature. en-us Wed, 28 Feb 2007 00:00:00 +0530 Wed, 04 Nov 2020 14:55:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=291284 Mesne profits awarded for wrongful possession and deprivation of the use and occupation of immovable property are characterised as compensation rather than consideration under an original business arrangement. A Supreme Court ruling confined to the year in which mesne profits are taxable does not determine whether those receipts are capital or revenue; merger applies only to issues directly decided. Where conflicting High Court views exist and no jurisdictional authority governs, the view favourable to the assessee may be preferred. Mesne profits are therefore treated as capital receipts not chargeable to tax, and interest awarded up to the decree date forms part of that compensation and is likewise capital in nature. Case-Laws Income Tax Wed, 28 Feb 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=291284