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Bhojisaon Infrastructure Pvt. Ltd. v. ITO ( Ahd)(Trib),www.itatonline.org

S. 4 :Charge of income-tax –Development agreement – The “right to sue” which arises on breach of a development agreement is a “personal right” and not a “capital asset” which can be transferred. Consequently, the damages received for relinquishment of the “right to sue” is a non-taxable capital receipt [ S. 2(14) 28(va) ]

Allowing the appeal of the assessee the Tribunal held that /The “right to sue” which arises on breach of a development agreement is a “personal right” and not a “capital asset” which can be transferred. Consequently, the damages received for relinquishment of the “right to sue” is a non-taxable capital receipt .( ITA. No. 2449/Ahd/2016, dt. 17.09.2018)(AY. 2008-09) 

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