Case Law Details
Case Name : Aerens Developers and Engineers Ltd. vs. ACIT (ITAT Delhi)
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:
The assessee company engaged in the business of real estate had entered into a consortium agreement dated 02.03.2005 amounts its associates defining their rolls, rights and res...
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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.