Compensation/damage for settlement of dispute is capital receipt

Shri Jackie Shroff Vs ACIT (ITAT Mumbai) Undisputed facts are, due to impersonation/forging of assessee’s signature in respect of sale of share of a company, the assessee filed a criminal complaint before the Economic Offence Wing. It is a fact on record that to settle the dispute, the person against whom the assessee filed complaint came forward for amicable settlement of the dispute and a settlement deed was executed between the parties. As per the terms of settlement deed the assessee was to receive certain amount towards compensation/damage in lieu of withdrawing the criminal complai...