Settlement for Dropping Property Suit Not Taxable due to Absence of Transfer

Shireen J. Dastur Vs ITO (ITAT Mumbai) The appeal concerned the taxability of ₹15 crore received by the assessee, a non-resident individual, for withdrawing a civil suit filed before the Bombay High Court in relation to a claimed inheritance right in an immovable property known as “The Mount,” forming part of the estate of late Ms. Amba Wadia. The Dispute Resolution Panel had upheld the Assessing Officer’s finding that the amount was taxable as long-term capital gains. The assessee contended that the payment was not income, as she had not transferred any capital asset. She stated that ...