Cinepolis Settlement Compensation is Non-Taxable Capital Receipt: ITAT Delhi

Milan Saini Vs DCIT (ITAT Delhi) Assessee Milan Saini, Co-founder & former Joint Managing Director of Cinepolis India Pvt. Ltd. (CIPL), received ₹33.12 crores from Cinepolis Group (Thymelicus Holding BV, Netherlands) pursuant to a Settlement Agreement dated 12.11.2013. The payment was made to resolve multiple civil & criminal litigations arising from Cinepolis’ failure to allot agreed equity to the Assessee as per the 2007 arrangement. Assessee disclosed it as Long-Term Capital Gain in his return. AO treated it as business income u/s 28(iv). CIT(A) held it as salary, alternatively ...