https://www.taxtmi.com/caselaws?id=27924 Damages received on breach of an agreement to sell immovable property were not taxable as capital gains because, after the assessee gave up specific performance, only a right to sue for damages remained. A mere right to sue is not a transferable capital asset under section 6(e) of the Transfer of Property Act, 1882, and capital gains under sections 45 and 2(47) of the Income-tax Act, 1961 require a transfer of a capital asset. As the receipt arose only from satisfaction of the damages claim and not from any transfer, the Delhi HC held that it could not be assessed as capital gains and answered the reference in favour of the assessee. en-us Mon, 21 May 1984 00:00:00 +0530 Tue, 16 Feb 2010 18:13:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27924 Damages received on breach of an agreement to sell immovable property were not taxable as capital gains because, after the assessee gave up specific performance, only a right to sue for damages remained. A mere right to sue is not a transferable capital asset under section 6(e) of the Transfer of Property Act, 1882, and capital gains under sections 45 and 2(47) of the Income-tax Act, 1961 require a transfer of a capital asset. As the receipt arose only from satisfaction of the damages claim and not from any transfer, the Delhi HC held that it could not be assessed as capital gains and answered the reference in favour of the assessee. Case-Laws Income Tax Mon, 21 May 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27924