https://www.taxtmi.com/caselaws?id=6239 Compensation received on cancellation of a managing agency is capital receipt where the termination destroys a source of income or impairs the profit-making apparatus; it is revenue only if the termination is a normal incident of trading and leaves the business structure intact. The Court applied the Tribunal's factual findings, which were not open to reappreciation, and treated the agency as a genuine source of income for the assessee. On those findings, the receipt arose from loss of a source of income, so it was not assessable as revenue income and was treated as a capital receipt. en-us Thu, 21 Jan 1971 00:00:00 +0530 Sat, 31 Oct 2015 15:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6239 Compensation received on cancellation of a managing agency is capital receipt where the termination destroys a source of income or impairs the profit-making apparatus; it is revenue only if the termination is a normal incident of trading and leaves the business structure intact. The Court applied the Tribunal's factual findings, which were not open to reappreciation, and treated the agency as a genuine source of income for the assessee. On those findings, the receipt arose from loss of a source of income, so it was not assessable as revenue income and was treated as a capital receipt. Case-Laws Income Tax Thu, 21 Jan 1971 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6239