https://www.taxtmi.com/caselaws?id=172264 Compensation received on termination of an agency business is analysed as a capital receipt where it is paid for the compulsory cessation of the agency rather than as a return from carrying on business in the relevant year. Income under the Indian Income-tax Act, 1922 is treated as a periodical monetary return from a definite source, so a termination payment is distinguished from ordinary profits. The statutory heads of income are read as covering receipts derived from business activity, not a solatium for ending that activity, and the capital-sum exemption provision does not expand the ordinary meaning of income to tax such a receipt. en-us Mon, 14 Mar 1932 00:00:00 +0530 Mon, 17 Aug 2015 18:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=172264 Compensation received on termination of an agency business is analysed as a capital receipt where it is paid for the compulsory cessation of the agency rather than as a return from carrying on business in the relevant year. Income under the Indian Income-tax Act, 1922 is treated as a periodical monetary return from a definite source, so a termination payment is distinguished from ordinary profits. The statutory heads of income are read as covering receipts derived from business activity, not a solatium for ending that activity, and the capital-sum exemption provision does not expand the ordinary meaning of income to tax such a receipt. Case-Laws Income Tax Mon, 14 Mar 1932 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=172264