Compensation for pre-closure of BOT project is capital receipt hence not taxable

Rohan and Rajdeep Infrastructure Vs DCIT (ITAT Pune) ITAT Pune held that the amount received as compensation for pre-closure of BOT (Build, Operate, Transfer) project is capital receipt. Hence, treating the same as revenue receipt by invoking provisions of section 28(ii)(d) of the Income Tax Act is unsustainable in law. Facts- The assessee had received the impugned compensation amount i.e Rs. 18,51,61,000/- from the Government of Maharashtra in lieu of closure of its Build, Operate, Transfer “BOT” projects at three location. Both the lower authorities have invoked section 28(ii)(d) of the ...