Assessee, as promoter of society received amount in question from Mr Dalvi Developer as a compensation for cancellation of agreement and for releasing Developer from all obligations arising out of aforesaid agreement. Assessee claimed that amount in issue was not an income subject to payment of income-tax within definition of section 2(24) and, alternatively, it was to be assessed as income from long-term capital gain. On appeal the Court held that amount in issue received by assessee was an income taxable under Act. Court  also held that  assessee had not received amount in issue towards relinquishment of any right or title or interest whatsoever in respect of any immovable property or for that matter ‘property of any kind’, amount in issue could not be treated as income from long-term capital gain.  Amount having been received by assessee to indemnify Developer from any action that might have been taken against him by persons who had booked flats through assessee, was to be assessed as income from other sources under section 56 of the Act.   On appeal  dismissing the appeal the Court held that  the findings of fact recorded by the Assessing Officer, which had been affirmed by the authorities and the High Court were that the assessee had entered into a memorandum of understanding dated April 10, 1985 with one Developer  a developer who was to acquire certain pieces and parcels of the land in Kalyan and thereupon construct residential buildings and apartments, that the assessee had collected funds from prospective members of the proposed society, that these funds were transferred to Developer  that subsequently, Developer  faced legal problems in acquiring the land and in obtaining clear title and necessary permissions, that thereupon, another memorandum of understanding dated December 1, 1989 was executed between the assessee and Developer  pursuant to which the amount received from the proposed members was refunded to the assessee. This sum was not brought to tax as income of the assessee, but another amount of Rs.29,11,000 received as compensation from Developer  by the assessee was brought to tax as income from other sources. On the facts, there was no reason to hold that this amount was not taxable being a capital receipt. Whether or not the amount would be taxable as income from business or income from other sources, need not be examined and answered. (AY.1998-99)