https://www.taxtmi.com/caselaws?id=180628 The court ruled that the sum of Rs. 40,000 received under the compromise deed was not assessable to tax. The amount was considered a capital receipt as it pertained to the termination of the sole distributorship agreement, which materially impacted the profit-making structure of the assessee's business. The court aligned its decision with the principles established in a prior case law, Commissioner of Income-tax v. Shaw Wallace & Co., emphasizing that even if the compensation was calculated based on potential profits, it would still be classified as a capital receipt. en-us Fri, 14 Feb 1958 00:00:00 +0530 Wed, 30 Mar 2016 18:16:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=180628 The court ruled that the sum of Rs. 40,000 received under the compromise deed was not assessable to tax. The amount was considered a capital receipt as it pertained to the termination of the sole distributorship agreement, which materially impacted the profit-making structure of the assessee's business. The court aligned its decision with the principles established in a prior case law, Commissioner of Income-tax v. Shaw Wallace & Co., emphasizing that even if the compensation was calculated based on potential profits, it would still be classified as a capital receipt. Case-Laws Income Tax Fri, 14 Feb 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=180628