https://www.taxtmi.com/caselaws?id=120386 Compensation received on termination of agency and distributorship arrangements, coupled with a restrictive non-compete covenant and transfer of trained staff and customer base, was treated as capital because it severed an income-generating source and the profit-making apparatus in that business. The receipt was therefore not taxable as business income. On closing stock, the assessee's consistent method of valuing stock at raw material cost was accepted, as the method had been followed in earlier years, not disturbed by the Revenue, and the overall effect of any revaluation was considered neutral after the business had ended. The addition was deleted. en-us Tue, 30 Sep 2008 00:00:00 +0530 Thu, 19 Jul 2012 10:22:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=120386 Compensation received on termination of agency and distributorship arrangements, coupled with a restrictive non-compete covenant and transfer of trained staff and customer base, was treated as capital because it severed an income-generating source and the profit-making apparatus in that business. The receipt was therefore not taxable as business income. On closing stock, the assessee's consistent method of valuing stock at raw material cost was accepted, as the method had been followed in earlier years, not disturbed by the Revenue, and the overall effect of any revaluation was considered neutral after the business had ended. The addition was deleted. Case-Laws Income Tax Tue, 30 Sep 2008 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=120386