https://www.taxtmi.com/caselaws?id=5026 Business profits arising during a part of the previous year remain taxable even if the business closes before year-end, because the charge to tax attaches to profits or gains earned during the relevant period and does not depend on continued operation through the whole accounting year. Income embedded in business receipts accrues or arises when received in the course of business, with the final tax liability worked out on the year's total results. The character of compensation paid for acquisition of the undertaking is irrelevant where the Revenue seeks only to tax pre-closure business profits. Accordingly, profits earned before closure were taxable in the company's hands. en-us Mon, 03 Apr 1967 00:00:00 +0530 Tue, 18 Nov 2008 16:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5026 Business profits arising during a part of the previous year remain taxable even if the business closes before year-end, because the charge to tax attaches to profits or gains earned during the relevant period and does not depend on continued operation through the whole accounting year. Income embedded in business receipts accrues or arises when received in the course of business, with the final tax liability worked out on the year's total results. The character of compensation paid for acquisition of the undertaking is irrelevant where the Revenue seeks only to tax pre-closure business profits. Accordingly, profits earned before closure were taxable in the company's hands. Case-Laws Income Tax Mon, 03 Apr 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5026