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2017 (2) TMI 793 - AT - Income TaxAddition of ‘liquidated damages received’ - revenue or capital receipt - Held that:- In the present case,we find that the FAA has not discussed anything. He has just reproduced the order of the AO and added one line to the order stating that he is convinced with the arguments advanced by the AO. We are unable to understand rational behind such an order. A reasoned order is primary pre-condition of any order-especially of appellate authorities. An order without reasons is no order at all. Appellate authorities are required to meet the arguments advanced before them during the course of hearing. In the matter before us, the FAA has not uttered a single word as to why the arguments of the assessee were not to be considered or as to why the cases relied upon by her were not applicable to the facts of the case. We have, after considering the available material, reached to the conclusion that liquidated damage received by the assessee on account of failure of the purchaser of shares of GOL to purchase the same, that it is a capital receipt as the shares were not held by the assessee as stock in trade. Reversing the order of the FAA,we decide the effective ground of appeal in favour of the assessee.
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