https://www.taxtmi.com/caselaws?id=302566 Compensation received for relinquishment of a mere right to sue on settlement of a land dispute was treated as a capital receipt outside the definition of capital asset, because such a right is not transferable under property law. On that basis, the receipt could not be taxed as capital gains under the normal provisions or brought to tax as income from other sources. The same receipt also could not be included in book profit under MAT, as a pure capital receipt with no income character cannot be artificially added under section 115JB merely because it appears in the accounts. Relief was thus upheld for the assessee on both issues. en-us Mon, 22 Nov 2021 00:00:00 +0530 Fri, 22 May 2026 11:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=302566 Compensation received for relinquishment of a mere right to sue on settlement of a land dispute was treated as a capital receipt outside the definition of capital asset, because such a right is not transferable under property law. On that basis, the receipt could not be taxed as capital gains under the normal provisions or brought to tax as income from other sources. The same receipt also could not be included in book profit under MAT, as a pure capital receipt with no income character cannot be artificially added under section 115JB merely because it appears in the accounts. Relief was thus upheld for the assessee on both issues. Case-Laws Income Tax Mon, 22 Nov 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=302566