https://www.taxtmi.com/caselaws?id=6651 The Bombay HC treated the assessee's right under the company's articles to special remuneration as an enduring contractual right, not mere payment for services actually rendered. Because the assessee ceased to perform services and surrendered that right altogether, the amount received was consideration for extinction of the service contract and relinquishment of an enduring asset. It was therefore characterised as capital receipt rather than income from employment or revenue receipt, and was not taxable as revenue income. en-us Mon, 07 Feb 1966 00:00:00 +0530 Sat, 31 Jan 2009 13:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6651 The Bombay HC treated the assessee's right under the company's articles to special remuneration as an enduring contractual right, not mere payment for services actually rendered. Because the assessee ceased to perform services and surrendered that right altogether, the amount received was consideration for extinction of the service contract and relinquishment of an enduring asset. It was therefore characterised as capital receipt rather than income from employment or revenue receipt, and was not taxable as revenue income. Case-Laws Income Tax Mon, 07 Feb 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6651