https://www.taxtmi.com/news?id=1187 Characterisation as a capital receipt depends on nexus with the profit earning apparatus: liquidated damages for delayed delivery of plant were held capital because they compensated sterilisation of a fixed asset rather than being ordinary business income. The cited authorities show compensation for termination, loss of source, abortive transactions, salami on leases, and payments tied to acquisition or procurement of capital have been treated as capital receipts when they replace or impair the capital structure; factual exceptions confirm the outcome is fact dependent. en-us Tue, 13 Jul 2010 16:27:41 +0530 Tue, 13 Jul 2010 16:27:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/news?id=1187 Characterisation as a capital receipt depends on nexus with the profit earning apparatus: liquidated damages for delayed delivery of plant were held capital because they compensated sterilisation of a fixed asset rather than being ordinary business income. The cited authorities show compensation for termination, loss of source, abortive transactions, salami on leases, and payments tied to acquisition or procurement of capital have been treated as capital receipts when they replace or impair the capital structure; factual exceptions confirm the outcome is fact dependent. News - Tue, 13 Jul 2010 16:27:41 +0530 https://www.taxtmi.com/news?id=1187