Vessel Construction Contract Cancellation: Capital Receipt, Exempt from Section 28(iv)

Great Eastern Shipping Co. Ltd. Vs ACIT (ITAT Mumbai) Cancellation of vessel construction contracts constituted a capital receipt and was outside the purview of Section 28(iv) In a recent case between Great Eastern Shipping Co. Ltd. and the Assessing Officer (ACIT) before the Income Tax Appellate Tribunal (ITAT) Mumbai, the issue of whether the cancellation of vessel construction contracts, resulting in a foreign exchange gain, constituted a capital receipt or a revenue receipt under Section 28(iv) of the Income Tax Act (ITA) was deliberated upon. The contention revolved around the treatment ...