The assessee was an illegal occupant of land, who was allotted a flat worth ₹2.59 crores as part of a court settlement after filing a suit against the developer. The AO treated this allotment as taxable income and denied the Section 54F deduction. The assessee argued that the compensation was for surrendering long-occupied premises and thus should be treated as a capital receipt. The ITAT held that the compensation for removing a nuisance is a capital receipt which is outside the scope of section 2(24) and thus the flat’s value was recognised as a non-taxable capital receipt. Relied on  Shri Kishre D.P. v. ITO ( ITA No. 3796/Mum/2014 dt.17-2 -2017 ) (AY. 2018-19) ( ITA No.6153 / Mum/2024    dt. 7-4 -2025  )     (AY.2016 -17 )