Compensation for loss of asset of enduring value is capital receipt

Khanna and Annadhanam Vs. CIT, ITA No. 1286/2008, Judgment delivered on: 29.01.2013, High Court of Delhi Issue- Whether the amount received by the appellant from DTTI in terms of release agreement with DTTI is capital receipt or revenue receipt? Whether the Compensation to CA Firm for loss of referral work is a non-taxable capital receipt? Facts – The understanding between the assessee-firm and the chartered accountants firm in Calcutta was limited to the work in Delhi and surrounding areas only. In 1996, it transpired that DHS wanted another firm of chartered accountants by name C.C. C...