Damages received for relinquishment of right to sue is a non-taxable capital receipt

Bhojison Infrastructure Pvt. Ltd Vs. ITO (ITAT Ahmedabad)

We notice that the compensation was not received as a result of termination of advantages associated with development rights but was claimed to be received to relinquish the rights of the assessee to sue against the vendor of the land. The assessee has received the compensation amount on sale of property occasioned due to breach of development agreement. The development agreement was thus frustrated by sale of land by the owner. The obse

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