Case Law Details
Case Name : Aerens Developers and Engineers Ltd. vs. ACIT (ITAT Delhi)
Appeal Number : ITA No. 5054/Del/2011
Date of Judgement/Order : 12.08.2016
Related Assessment Year : 2007-08
Courts :
All ITAT ITAT Delhi
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CA Saurabh Chokra
Brief of the case:
The ITAT Delhi in the above cited case held that Compensation received for loss of business activity is a Capital Receipt as it is injury to the profit making apparatus and not the loss of profits. Therefore, in the present case , non-supply of land by supplier which was to be used by the consortium was injury to profit making apparatus and hence capital receipt.
Facts of the case:
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Author Bio
Each and every case decides on their on facts and situation as in this case no business was setup (started) therefore the compensation received was not treated as revenue receipts by the tribunal.