2011 (8) TMI 147

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....he following question of law:-   "Whether on the facts and in law, the Tribunal was right in holding that the amount of Rs.8,42,000/- received as a compensation for damage caused to the land, a capital asset of the appellant, was a revenue receipt taxable in the hands of the appellant?"   2. The assessment year involved herein is AY 2004-05.   3. The assessee has a property....

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....Sahara India agreed to pay to the assessee compensation as under:-   (i) Compensation for the damage to the land Rs.8,42,000/-;   (ii) Consideration for granting the right of way in the land Rs.5,58,000/-;   Total Rs.14,00,000/-.   4. The consideration of Rs.5,58,000/- received by the assessee for granting the right of way was held by the ITAT as capital receipt and....

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....ee, it cannot be said that the damage caused to the land has been set right by restoring the land to its original position. In these circumstances, in our opinion, the amount of Rs. 8,42,000/- received by the assessee towards the damage to the land belonging to the assessee cannot be said to be revenue receipt. The fact that the land has remained with the assessee and that the assessee in future m....