The Tribunal held that the character of the compensation would not change merely on the ground that the development agreement, termination of agreement and the sale of the property happened in different financial years. It was because there were different parties involved in the transactions and the assessee had no control whatsoever on these parties. When the societies terminated the agreement with the assessee, it acquired the right to sue and for relinquishment of such right it received the compensation.  The compensation amount was not liable to be treated as income under section 2(24) nor was the amount taxable as capital gains or business income being in the nature of a capital receipt.  Accordingly the amount of the compensation received by the assessee from the societies for relinquishment of its right to sue to avoid the litigation could not be treated as a colourable device. Hence, the amount received as compensation in view of the right was not chargeable to tax. Followed  Popular Estate Management Ltd. v. ITO (I. T. A. No. 212/Ahd/2014  dt .29 -8 -2017  ( AY.2012-13)