https://www.taxtmi.com/caselaws?id=438539 An agreement to sell did not create any right, title or interest in the immovable property; it only gave the assessee a contractual remedy to seek specific performance or, failing that, damages. Because the property had already been conveyed to the tenants, the later consent decrees settled the pending specific performance claim and the receipt was treated as compensation for the failure or extinguishment of that contractual remedy, not as consideration for transfer of a capital asset. Clause 10 of the consent terms was regarded as only an internal payment arrangement and not a transfer of rights to the partners. The receipt was therefore not taxable as capital gains, and the corresponding additions in the hands of the firm and partners did not survive. en-us Mon, 29 May 2023 00:00:00 +0530 Fri, 02 Jun 2023 17:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=438539 An agreement to sell did not create any right, title or interest in the immovable property; it only gave the assessee a contractual remedy to seek specific performance or, failing that, damages. Because the property had already been conveyed to the tenants, the later consent decrees settled the pending specific performance claim and the receipt was treated as compensation for the failure or extinguishment of that contractual remedy, not as consideration for transfer of a capital asset. Clause 10 of the consent terms was regarded as only an internal payment arrangement and not a transfer of rights to the partners. The receipt was therefore not taxable as capital gains, and the corresponding additions in the hands of the firm and partners did not survive. Case-Laws Income Tax Mon, 29 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=438539