https://www.taxtmi.com/caselaws?id=36598 Payment received from the forest department for sandalwood trees extracted from the assessee's land was treated as a capital receipt, not taxable income. The court reasoned that the trees were removed root and branch, destroying the source of further growth and affecting the capital structure rather than generating recurring income. The statutory scheme did not create any service obligation or remuneration nexus, and the amount was compensatory for the assessee's proprietary interest in the trees as an asset. On that basis, the receipt was held not chargeable to income-tax. en-us Mon, 21 Jul 1980 00:00:00 +0530 Tue, 23 Mar 2010 13:10:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=36598 Payment received from the forest department for sandalwood trees extracted from the assessee's land was treated as a capital receipt, not taxable income. The court reasoned that the trees were removed root and branch, destroying the source of further growth and affecting the capital structure rather than generating recurring income. The statutory scheme did not create any service obligation or remuneration nexus, and the amount was compensatory for the assessee's proprietary interest in the trees as an asset. On that basis, the receipt was held not chargeable to income-tax. Case-Laws Income Tax Mon, 21 Jul 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=36598