https://www.taxtmi.com/caselaws?id=186966 The decisive test for the tax treatment of consideration received on transfer of transport permits is the real nature of the transaction, not its label. The permits were treated as non-marketable rights, not capital assets owned in the ordinary sense, and the assessee had no legal entitlement to demand them as property. The receipt was for parting with the right to ply vehicles and reflected a change in the mode of earning profits, without creating an enduring capital advantage or increasing capital. The transfer-of-loom-hours authority was distinguished because that case involved a transferable legal right. The amount was therefore revenue income, not a capital receipt, and was taxable. en-us Wed, 18 Apr 1962 00:00:00 +0530 Wed, 05 Oct 2016 17:18:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186966 The decisive test for the tax treatment of consideration received on transfer of transport permits is the real nature of the transaction, not its label. The permits were treated as non-marketable rights, not capital assets owned in the ordinary sense, and the assessee had no legal entitlement to demand them as property. The receipt was for parting with the right to ply vehicles and reflected a change in the mode of earning profits, without creating an enduring capital advantage or increasing capital. The transfer-of-loom-hours authority was distinguished because that case involved a transferable legal right. The amount was therefore revenue income, not a capital receipt, and was taxable. Case-Laws Income Tax Wed, 18 Apr 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186966