Taxation of contract termination compensation and FMV of converted inventory treated as business income for assessments. The amendment makes any amount received in connection with termination or modification of business contracts chargeable under Profits and gains of business or profession, and requires the fair market value of inventory, determined as prescribed on the date it is converted into or treated as a capital asset, to be chargeable under the same head.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxation of contract termination compensation and FMV of converted inventory treated as business income for assessments.
The amendment makes any amount received in connection with termination or modification of business contracts chargeable under Profits and gains of business or profession, and requires the fair market value of inventory, determined as prescribed on the date it is converted into or treated as a capital asset, to be chargeable under the same head.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.