https://www.taxtmi.com/caselaws?id=188839 Compensation received for cancelling or modifying a business contract entered into in the ordinary course of trade is revenue income where the contract is not a capital asset and its termination does not sterilise the profit-making structure of the business. On the facts, the assessee's monopoly purchasing rights were acquired as part of its trading operations in electric goods, and their termination did not destroy any fixed capital asset or prevent continuation of the same business. The receipt was therefore treated as taxable revenue receipt and included in total income; it was not excluded as a capital receipt. en-us Tue, 23 Jun 1959 00:00:00 +0530 Sat, 17 Dec 2016 15:11:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=188839 Compensation received for cancelling or modifying a business contract entered into in the ordinary course of trade is revenue income where the contract is not a capital asset and its termination does not sterilise the profit-making structure of the business. On the facts, the assessee's monopoly purchasing rights were acquired as part of its trading operations in electric goods, and their termination did not destroy any fixed capital asset or prevent continuation of the same business. The receipt was therefore treated as taxable revenue receipt and included in total income; it was not excluded as a capital receipt. Case-Laws Income Tax Tue, 23 Jun 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=188839