The High Court considered a case involving the nature of a ...

High Court ruled receipt from hotel license as revenue, not capital gain. Decision favored Revenue/Appellant.

Case Laws Income Tax

July 3, 2024

The High Court considered a case involving the nature of a receipt received by a company for relinquishing its right to operate a hotel under a license agreement. The court analyzed the terms of the operating agreement and settlement agreement between the parties. It concluded that the amount received was a revenue receipt, not a capital receipt, as it was part of a trading contract and related to settling disputes, not the transfer of a capital asset. The court held that the sum did not qualify as long-term capital gain, overturning the decision of the ITAT. Ultimately, the court ruled in favor of the Revenue/Appellant, stating that the receipt was a revenue receipt in the hands of the company.

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The High Court considered a case involving the nature of a ...

High Court ruled receipt from hotel license as revenue, not capital gain. Decision favored Revenue/Appellant.

Case Laws Income Tax

July 3, 2024

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