https://www.taxtmi.com/caselaws?id=6350 Compensation received on retirement from a partnership was treated as revenue where it arose from surrender of rights in an ordinary trading arrangement rather than from extinction of an independent capital asset. The partnership business continued, its structure remained intact, and the payment represented compensation for termination of a commercial arrangement together with past profits. Where cancellation of a business contract is a normal incident of trade and does not impair the profit-making structure or source of income, the receipt is revenue in character and falls within taxable income under section 10 of the Income-tax Act, 1922. en-us Wed, 23 Aug 1972 00:00:00 +0530 Tue, 20 Jan 2026 17:56:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6350 Compensation received on retirement from a partnership was treated as revenue where it arose from surrender of rights in an ordinary trading arrangement rather than from extinction of an independent capital asset. The partnership business continued, its structure remained intact, and the payment represented compensation for termination of a commercial arrangement together with past profits. Where cancellation of a business contract is a normal incident of trade and does not impair the profit-making structure or source of income, the receipt is revenue in character and falls within taxable income under section 10 of the Income-tax Act, 1922. Case-Laws Income Tax Wed, 23 Aug 1972 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6350