One of my client received a lump sum of Rs. 2 Lacs for allowing another party to use a portion of his land to reach his property. No period is mentioned in the deed and it is permanant one. We are treating the receipt as capital receipt and credit the amount from the value of the land so that the cost of the land is reduced by the said sum. We are of the opinion that there is no transfer of property as the rights of the property is not relinquished and further the client is retaining the same rights and continue to retain the same even after the grant of rights to the another party. The AO treated the entire sum as rent and included the same under other sources. Is the action of the AO valid one on the basis of the facts narrated above? Even if the amount is treated as rent, is AO justified to include the entire amount as income for a single year?