https://www.taxtmi.com/caselaws?id=174777 A managing agency was treated as a capital asset, and the receipt on resignation was capital in nature, but capital gains under Section 12B could arise only if the sum resulted from a sale, exchange, or transfer of that asset. The Court distinguished the original contemplated transfer from the later modified arrangement, under which the assessee simply resigned and ceased to function as managing agent. Because a transfer requires vesting of rights in another person, while relinquishment or extinction of rights leaves nothing to transfer, the final transaction was not a sale or transfer. The receipt was therefore not taxable as capital gains under Section 12B. en-us Thu, 12 Mar 1953 00:00:00 +0530 Wed, 28 Nov 2018 17:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=174777 A managing agency was treated as a capital asset, and the receipt on resignation was capital in nature, but capital gains under Section 12B could arise only if the sum resulted from a sale, exchange, or transfer of that asset. The Court distinguished the original contemplated transfer from the later modified arrangement, under which the assessee simply resigned and ceased to function as managing agent. Because a transfer requires vesting of rights in another person, while relinquishment or extinction of rights leaves nothing to transfer, the final transaction was not a sale or transfer. The receipt was therefore not taxable as capital gains under Section 12B. Case-Laws Income Tax Thu, 12 Mar 1953 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=174777