Arbitration award pursuant to family arrangement is not chargeable to tax

Ramona Pinto Vs DCIT (Bombay High Court) Bombay High Court held that amount received as per arbitration award by the appellant pursuant to a family arrangement is not chargeable to tax. Facts- In the previous year, i.e., on 17th September 2009, consent terms were reached between appellant, her brother and other members of the family, pursuant to which, the disputes between them have been settled. Consequent thereto, an arbitration award dated 25th September 2009 came to be passed in terms of the consent terms. Pursuant thereto, appellant became entitled to receive an amount of Rs.28 Crores in...