Capital gain or income from other sources

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2015 One of my friend booked a flat with a construction company and paid 85 lakhs. Later as they have not handed-over the property on time. He filed a case in the court and got some money return back say 1 crore ten lakhs(as some amt as compensation) and he paid lawyer fees and court fees of 12 lakhs nearly. there is a profit of 8 lkahs approx.

Is it a capital gain or Income from other sources.

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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09 July 2015 Income from Other Sources. Justifications are:-

1. You do not own a 'Capital Asset'.
2. You have not transferred any capital asset.

Also, you may deduct the expenses and show the balance as income.

(Sec 28, income from business or profession does not specically covers this)

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