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2015 (10) TMI 240 - AT - Income TaxTaxing the compensation received - whether be taxed as Capital Receipt? - it is an admitted fact that the assessee received a sum towards the damages to the land belonging to it and the AO taxed it considering the same as revenue receipt, the ld. CIT(A) upheld the view taken by the AO. Held that:- On a similar issue their lordships of the Hon’ble Bombay High Court in the Case of Dr. (Ms) Avimay S. Hakim Vs ITO (2011 (8) TMI 147 - Bombay High Court) held that the fact that the land has remained with the assessee and that the assessee in future may earn profits from the said land cannot be a ground to hold that the compensation received by the assessee in lieu of damage caused to the land was revenue receipt. Accordingly, we answer the question in favour of the assessee and against the revenue. The impugned addition sustained by the ld. CIT(A) is deleted because the amount received towards the damage to the land belonging to the assessee cannot be said to be a revenue receipts. - Decided in favour of assessee.
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