Assessee-company, engaged in business of real estate development, took a plot of land on lease for a period of 30 years. Said plot was treated as capital asset in assessee’s books of account. Later on, allotment of said plot made in favour of assessee was cancelled vide Goa Act, 2012 and certain amount was paid to assessee as compensation for same. Assessee claimed said compensation received for cancellation of allotment as capital receipt.  Assessing Officer accepted  the same. PCIT  under section 263 held that compensation received by assessee for cancellation of lease was to be considered as revenue receipt. Tribunal set aside the revision order. On appeal the Court held that  since plot allotted to assessee was to be used by for carrying on its business and was an income producing asset for its company, wherein assessee intended to construct a building and further sub-lease or transfer such a building to third parties to earn income, thus, it would constitute a capital asset. leasehold rights held by assessee in plot was a Capital Asset and that compensation received by Assessee from Government of Goa on cancellation of plot was a capital receipt and not a revenue receipt. Order of Tribunal was affirmed.  (AY. 2013-14)