The assessee was awarded a sum of Rs. 2 crores as compensation for wrongful possession by its erstwhile tenant. The AO  held that the comparable market rent the amount received by the assessee in the form of compensation was to be treated as arrears of rent under section 25B and under section 25AA of the Income-tax Act, 1961 inserted by the Finance Acts 2000 and 2001 with effect from April 1, 2000 and April 1, 2001 respectively. Accordingly, he brought to tax the compensation received in the sum of Rs. 2 crores as arrears of rent chargeable under the head “Income from house property” and granted 30 per cent. standard deduction thereon under section 24 and assessed the remaining Rs. 1.40 crores as taxable income from house property. The Commissioner (Appeals) held that mesne profits were taxable as a revenue receipt.  On appeal the Tribunal held that   the compensation (i. e. mesne profits) of Rs. 2 crores was a capital receipt. Followed ACIT v. Goodwill Theaters Pvt .Ltd. (IT ANo. 8185/Mum/2011 dt. June 19, 2013) followed.( AY.2014-15)