https://www.taxtmi.com/caselaws?id=180755 Compensation received on resignation from a managing agency was treated as business income under the deeming fiction in section 10(5A) because the payment had a direct nexus with termination of the managing agency; the section was confined to taxing that receipt as profits and gains and was not a new source of income. The receipt was therefore assessable in the relevant assessment year. In computing the taxable amount, the initial cost of acquiring the managing agency and brokerage paid to complete the transaction were deductible because ordinary commercial computation principles applied unless expressly excluded. The assessable profit was limited to the net balance after those deductions. en-us Fri, 29 Jan 1965 00:00:00 +0530 Fri, 01 Apr 2016 11:08:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=180755 Compensation received on resignation from a managing agency was treated as business income under the deeming fiction in section 10(5A) because the payment had a direct nexus with termination of the managing agency; the section was confined to taxing that receipt as profits and gains and was not a new source of income. The receipt was therefore assessable in the relevant assessment year. In computing the taxable amount, the initial cost of acquiring the managing agency and brokerage paid to complete the transaction were deductible because ordinary commercial computation principles applied unless expressly excluded. The assessable profit was limited to the net balance after those deductions. Case-Laws Income Tax Fri, 29 Jan 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=180755