Compensation for Relinquishment of Right to Sue for Breach of Contract is non taxable Capital Receipt

Popular Estate Management Ltd. Vs. DCIT (ITAT Ahmedabad) Compensation for Relinquishment of Right to Sue for Breach of Contract is Capital Receipt & hence Not Chargeable to Tax The issue under consideration is whether the CIT(A) is correct in confirming the addition while treating the compensation received for relinquishment of right to sue as taxable business income & accordingly considered it as revenue receipt as against the capital receipt? In the present case the assessee has received the compensation for relinquishment of right to sue from certain societies as there was the breac...