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2017 (4) TMI 353 - AT - Income TaxNature of receipt - damages received from DDA - loss of sources of income - Arbitration awards from DDA in respect of construction of houses at Rohini, Motia Khan and Vasant Kunj for earlier years - Held that:- The only receipt on which assessment was completed was receipt of award during the year and there was no other income. Assessee was out of the contract business due to the dispute with DDA, therefore, damages so received were for loss of business and not merely loss of profit, same was capital in nature. The business of assessee was totally paralyzed. The nature of dispute under consideration is similar to dispute in AY 2003-04. We further find that Ld. CIT(A) by following the decision of Delhi ITAT in the assessee's own case for the asstt.year 2003-04, rightly deleted the addition made by the Assessing Officer who treated the-same as revenue receipt, which does not need any interference on our part, hence, we uphold the action of the Ld. CIT(A) on the issue in dispute and dismiss the ground no. 1 raised by the Revenue. Damages and interest being still subjudice cannot be brought to tax in the year under consideration. The finding of the Assessing Officer in this respect that if the assessee fails in appeal by the judgement of Hon'ble High Court then the same will be deducted from its income is not justified. After considering the relevant facts of case and in view of the legal proposition cited in cases relied upon by the assessee, the ld. CIT(A) has rightly deleted the addition which does not need any interference on my part, hence, uphold the action of the Ld. CIT(A) on the issue in dispute and dismiss the ground no. 2 raised by the Revenue.
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