Compensation for relinquishing the right to sue is not taxable as business income under Income Tax Act Section 2(24).

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....Receipt for relinquishment of right to sue the party - to be treated and taxed as business income OR capital receipts - the impugned compensation amount is not liable to be treated as income u/s.2(24) of the Act nor the same is taxable as capital gain for business income being in the nature of a capital receipt. - AT....