https://www.taxtmi.com/caselaws?id=6718 Sums received on termination of film-financing and sub-distribution contracts were treated as trading receipts because the assessees were carrying on financing and allied film-distribution business under ordinary commercial arrangements. The cancellation of the contracts did not destroy the profit-making apparatus or impair the trading structure; it only adjusted business relations in the course of trade. Applying the fixed capital and circulating capital test, the receipts were connected with circulating capital and arose from ordinary business contracts, not from sterilisation of a capital asset or loss of an income-producing source. They were therefore taxable as trading receipts. en-us Mon, 15 Mar 1965 00:00:00 +0530 Sun, 01 Feb 2009 12:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6718 Sums received on termination of film-financing and sub-distribution contracts were treated as trading receipts because the assessees were carrying on financing and allied film-distribution business under ordinary commercial arrangements. The cancellation of the contracts did not destroy the profit-making apparatus or impair the trading structure; it only adjusted business relations in the course of trade. Applying the fixed capital and circulating capital test, the receipts were connected with circulating capital and arose from ordinary business contracts, not from sterilisation of a capital asset or loss of an income-producing source. They were therefore taxable as trading receipts. Case-Laws Income Tax Mon, 15 Mar 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6718