https://www.taxtmi.com/caselaws?id=769702 Compensation received under a consent decree for the loss of a mere right to sue was treated as a non-taxable capital receipt, not capital gains. The analysis applied the principle that a right to sue is not transferable under section 6 of the Transfer of Property Act, 1882, and therefore is not a capital asset under section 45 of the Income-tax Act, 1961. Damages awarded in lieu of an unenforceable specific performance claim were distinguished from consideration for transfer of a surviving property right, so the amount remained outside capital gains tax. en-us Wed, 23 Apr 2025 00:00:00 +0530 Mon, 28 Apr 2025 11:36:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769702 Compensation received under a consent decree for the loss of a mere right to sue was treated as a non-taxable capital receipt, not capital gains. The analysis applied the principle that a right to sue is not transferable under section 6 of the Transfer of Property Act, 1882, and therefore is not a capital asset under section 45 of the Income-tax Act, 1961. Damages awarded in lieu of an unenforceable specific performance claim were distinguished from consideration for transfer of a surviving property right, so the amount remained outside capital gains tax. Case-Laws Income Tax Wed, 23 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769702