Hi All,
One of my friend had filed a suit for non receipt of a professional
licence i.e. like a certificate to start own practice in a specific
field, on an Govt institute. Now court has awarded a lump sum
compansation to my friend for loss occurred to him. This compansation
is awarded considering that if he was provided the licence (or
certificate) we would have earned much income.
Hence my concern is whether he is liable to pay any tax on the same,
because it is a capital receipt and these are not taxable under Income
Tax Act.
Please provide relevant case laws and sections for my reference
CAclubindia
