https://www.taxtmi.com/caselaws?id=771380 Mesne profits received as compensation for wrongful occupation of property were held to be capital receipt, not revenue income, because they represent damages for deprivation of a capital asset or source of income rather than arrear rent or ordinary income. The Tribunal also applied the principle that, where two divergent High Court views exist, the interpretation favourable to the assessee should be adopted. On that basis, the additions made in respect of mesne profits for both assessment years were unsustainable. en-us Tue, 20 May 2025 00:00:00 +0530 Sat, 24 May 2025 09:00:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771380 Mesne profits received as compensation for wrongful occupation of property were held to be capital receipt, not revenue income, because they represent damages for deprivation of a capital asset or source of income rather than arrear rent or ordinary income. The Tribunal also applied the principle that, where two divergent High Court views exist, the interpretation favourable to the assessee should be adopted. On that basis, the additions made in respect of mesne profits for both assessment years were unsustainable. Case-Laws Income Tax Tue, 20 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771380