https://www.taxtmi.com/caselaws?id=26951 Compensation received for breach of a contract for sale of movable property, after the property had been sold to a third party, is not taxable as capital gains when only a bare right to sue for damages survives. A mere right to sue is not an actionable claim, is not transferable under section 6(e) of the Transfer of Property Act, and does not amount to transfer of a capital asset under section 2(47) of the Income-tax Act. Without a transfer and computable consideration, section 45 does not apply, and the receipt is outside the capital gains head. en-us Mon, 09 Dec 1985 00:00:00 +0530 Tue, 09 Feb 2010 15:42:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26951 Compensation received for breach of a contract for sale of movable property, after the property had been sold to a third party, is not taxable as capital gains when only a bare right to sue for damages survives. A mere right to sue is not an actionable claim, is not transferable under section 6(e) of the Transfer of Property Act, and does not amount to transfer of a capital asset under section 2(47) of the Income-tax Act. Without a transfer and computable consideration, section 45 does not apply, and the receipt is outside the capital gains head. Case-Laws Income Tax Mon, 09 Dec 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26951