Compensation received due to non-performance of obligation is capital receipt

ACIT Vs Kenneth Builders & Developers Limited (ITAT Mumbai) ITAT Mumbai held that compensation received on account of non-performance of obligation by the Delhi Development Authority (DDA) is capital receipt not taxable in the hands of the assessee. Facts- During the course of assessment the A.O noticed that assesse has treated compensation of Rs.2,78,82,74,243/- received from Delhi Development Authority as a capital receipt not chargeable to tax. The A.O further noticed that in the original return of income the assesse had included this amount in the book profit, however, in the revised r...