https://www.taxtmi.com/caselaws?id=70562 A payment of Rs. 60,000 received on premature termination of a consultancy arrangement is treated as capital in nature and not taxable, where the receipt is in settlement of the termination and the earlier year's finding already characterised it as capital. By contrast, managing agency remuneration accrued for services already rendered remains taxable in the relevant assessment year, because the amounts arose on approval of the company accounts and the taxpayer had not shown a permanent discontinuance of business. The cited principle on discontinued professional practice was therefore inapplicable, and the statutory insertion dealing with post-discontinuance receipts did not alter the result on these facts. en-us Mon, 06 Oct 1980 00:00:00 +0530 Mon, 18 Apr 2011 10:04:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=70562 A payment of Rs. 60,000 received on premature termination of a consultancy arrangement is treated as capital in nature and not taxable, where the receipt is in settlement of the termination and the earlier year's finding already characterised it as capital. By contrast, managing agency remuneration accrued for services already rendered remains taxable in the relevant assessment year, because the amounts arose on approval of the company accounts and the taxpayer had not shown a permanent discontinuance of business. The cited principle on discontinued professional practice was therefore inapplicable, and the statutory insertion dealing with post-discontinuance receipts did not alter the result on these facts. Case-Laws Income Tax Mon, 06 Oct 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=70562