Compensation received towards damage to the land is capital receipt

Advertisement Brief Fact of the Case The assessee has an agricultural land. During A.Y. 2010-11, M/s Indian Oil Coproration Ltd, had laid down the underground pipe-line. The Land of the assessee was in the way of pipe line to be laid down. For digging of land and laying the pipe-line, the Indian Oil Corporation Ltd. had paid Rs. 4,75,980/- to the assessee which was considered to be a capital in nature. However, the A.O. did not find merit in the submissions of the assessee and made the addition treating the said amount as revenue receipt and also causal and non-recurring nature. Contention ...