https://www.taxtmi.com/caselaws?id=60372 A receipt described in a consent decree as mesne profits is not ative for tax purposes; its character depends on the real legal effect of the decree and the nature of the occupation. Mesne profits arise only from wrongful possession, whereas occupation governed by mutually settled consent terms is not wrongful possession. On the facts discussed, the monthly sums were compensation for lawful use and enjoyment of the premises, and therefore represented revenue income rather than compensation for wrongful occupation or a capital accretion. The Revenue was entitled to look beyond the label used in the decree and assess the receipt according to its true legal nature. en-us Thu, 14 Aug 2003 00:00:00 +0530 Mon, 12 Aug 2024 16:05:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=60372 A receipt described in a consent decree as mesne profits is not ative for tax purposes; its character depends on the real legal effect of the decree and the nature of the occupation. Mesne profits arise only from wrongful possession, whereas occupation governed by mutually settled consent terms is not wrongful possession. On the facts discussed, the monthly sums were compensation for lawful use and enjoyment of the premises, and therefore represented revenue income rather than compensation for wrongful occupation or a capital accretion. The Revenue was entitled to look beyond the label used in the decree and assess the receipt according to its true legal nature. Case-Laws Income Tax Thu, 14 Aug 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=60372