https://www.taxtmi.com/caselaws?id=152252 Termination payments under a distributorship arrangement were treated as capital, not revenue, where the arrangement conferred exclusive territory rights, monopoly selling rights, favourable purchase terms, and an enduring commercial advantage. Its termination destroyed a source of profit-making and impaired the business's capital structure, so the periodic form of payment and its description as remuneration did not change its character. The receipt was therefore outside the charge to income tax; section 4(3)(vii) was held inapplicable because the recipients were not employees and the payment was not recurring business income, and section 10(5A) did not apply because the statutory agency conditions were not met. en-us Tue, 11 Dec 1962 00:00:00 +0530 Tue, 06 Aug 2013 16:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=152252 Termination payments under a distributorship arrangement were treated as capital, not revenue, where the arrangement conferred exclusive territory rights, monopoly selling rights, favourable purchase terms, and an enduring commercial advantage. Its termination destroyed a source of profit-making and impaired the business's capital structure, so the periodic form of payment and its description as remuneration did not change its character. The receipt was therefore outside the charge to income tax; section 4(3)(vii) was held inapplicable because the recipients were not employees and the payment was not recurring business income, and section 10(5A) did not apply because the statutory agency conditions were not met. Case-Laws Income Tax Tue, 11 Dec 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=152252