07 January 2023
Assessee, a purchaser of land, paid advance to seller Rs.10 lacs. As the land title was not clear, purchaser demanded his advance money. Seller refused to give advance. Purchaser filed suit in court and court ordered to seller to pay 16 lacs to purchaser within stipulated time. Seller filed appeal in higher court & in ultimate compromise seller paid Rs.21 lacs in all. What will be treatment for income tax purpose of additional money received Rs.11 lacs.
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