https://www.taxtmi.com/caselaws?id=443124 Compensation received under a consent decree was treated as a capital receipt because specific performance of the commercial space allotment had become impossible and the assessee was left only with a mere right to sue, which is not transferable under section 6(e) of the Transfer of Property Act, 1882. On that basis, the receipt was viewed as compensation in lieu of a non-transferable right rather than consideration for transfer of a capital asset, so it was not chargeable to capital gains tax or other income on the stated facts. The revisionary order under section 263 was also considered unsustainable because it rested on precedent dealing with a different factual situation. en-us Wed, 30 Aug 2023 00:00:00 +0530 Sat, 16 Sep 2023 08:47:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=443124 Compensation received under a consent decree was treated as a capital receipt because specific performance of the commercial space allotment had become impossible and the assessee was left only with a mere right to sue, which is not transferable under section 6(e) of the Transfer of Property Act, 1882. On that basis, the receipt was viewed as compensation in lieu of a non-transferable right rather than consideration for transfer of a capital asset, so it was not chargeable to capital gains tax or other income on the stated facts. The revisionary order under section 263 was also considered unsustainable because it rested on precedent dealing with a different factual situation. Case-Laws Income Tax Wed, 30 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=443124