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2009 (3) TMI 410 - HC - Income TaxAmount received as compensation – Business Income or Capital – The assessee-firm owned a cinema building popularly known as Prem Prakash Talkies. It entered into an agreement of sale with M/s. Jaipur Mineral and Development Syndicate Private Limited (“JMDSPL”). The Agreement failed nd the terms and conditions thereof could not be performed, and therefore, the assessee-firm became entitled to realize a sum of Rs. 20,000 as compensation. In this case Rajasthan High Court in the light of the Judgment of D.P. Sandu Bros. Chembur P.Ltd. (2005) 273 ITR 1 (SC) held that the aforesaid amount of Rs. 20,000 can only be treated as capital receipts.– Decision in favor of assessee – against the revenue
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