https://www.taxtmi.com/caselaws?id=27899 Compromise receipts were not taxable solely on receipt; taxability depended on when the underlying remuneration accrued under the contract. The assessee's income arose on sale of plots and full realisation of their value, so amounts already due in earlier years and amounts referable to profits accruing up to the compromise date had to be identified separately from any component for future profits. The compromise sum was therefore a composite settlement, not a single income item of the year of receipt. Only the portion that had accrued in the relevant previous year could be assessed in assessment year 1959-60, and the balance was not chargeable then. en-us Mon, 21 Nov 1983 00:00:00 +0530 Tue, 16 Feb 2010 16:55:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27899 Compromise receipts were not taxable solely on receipt; taxability depended on when the underlying remuneration accrued under the contract. The assessee's income arose on sale of plots and full realisation of their value, so amounts already due in earlier years and amounts referable to profits accruing up to the compromise date had to be identified separately from any component for future profits. The compromise sum was therefore a composite settlement, not a single income item of the year of receipt. Only the portion that had accrued in the relevant previous year could be assessed in assessment year 1959-60, and the balance was not chargeable then. Case-Laws Income Tax Mon, 21 Nov 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27899