Right to sue for damages is capital receipts hence not taxable

Virendra Bhavanji Gala Vs PCIT (ITAT Mumbai) ITAT Mumbai held that damage on account of right to sue is a capital receipt and accordingly not chargeable to tax. Facts- The assessee is an individual who entered into an MOU with Aadi Properties LLP with the intention to book commercial space to be developed and constructed in a proposed project by M/s. Aadi Properties LLP on a plot of land for consideration of Rs. 10,75,00,000/-. Accordingly, payment of Rs. 25,00,000/- by cheque drawn on the Bank of India was paid by the assessee. The amount was nearly 2.33% of the total consideration payable by...