https://www.taxtmi.com/caselaws?id=5368 A cash allowance paid under a statutory compassionate-payment provision was held to be a capital receipt, because its character depended on the nature of the receipt in the recipient's hands rather than on periodicity or the label attached to it. The payment was treated as compensation for the extinction of an earlier allowance under the abolition statute and did not create a real source of income. Accordingly, it was not taxable as income under section 2(24) of the Income-tax Act, 1961, and the tax authorities were not entitled to assess it as revenue receipt. en-us Wed, 22 Apr 1992 00:00:00 +0530 Thu, 11 Dec 2025 14:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5368 A cash allowance paid under a statutory compassionate-payment provision was held to be a capital receipt, because its character depended on the nature of the receipt in the recipient's hands rather than on periodicity or the label attached to it. The payment was treated as compensation for the extinction of an earlier allowance under the abolition statute and did not create a real source of income. Accordingly, it was not taxable as income under section 2(24) of the Income-tax Act, 1961, and the tax authorities were not entitled to assess it as revenue receipt. Case-Laws Income Tax Wed, 22 Apr 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5368