In a dispute concerning mesne profits, the ITAT addressed the ...

Rental Income from Commercial Premises Deemed Capital Receipt, Exempting Assessee from Tax Liability Under Mesne Profits Principle

May 24, 2025

Case Laws Income Tax AT

In a dispute concerning mesne profits, the ITAT addressed the classification of rental income from commercial premises. Analyzing divergent judicial perspectives, the tribunal referenced precedents from Kerala and Calcutta High Courts. Applying the principle of selecting the interpretation most favorable to the assessee, the tribunal determined that mesne profits constitute a capital receipt, thus rendering it non-taxable. Consequently, the tribunal allowed the assessee's appeals, establishing that the rental income from ground floor and basement commercial spaces should be treated as a capital receipt exempt from taxation.

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In a dispute concerning mesne profits, the ITAT addressed the ...

Rental Income from Commercial Premises Deemed Capital Receipt, Exempting Assessee from Tax Liability Under Mesne Profits Principle

May 24, 2025

Case Laws Income Tax AT

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