https://www.taxtmi.com/caselaws?id=6883 A payment made on the termination of employment following nationalisation was examined to determine whether it was capital or revenue in the recipient's hands. The Court treated the receipt according to its real character, noting that it was not shown to be remuneration for past or future services, nor payment for business profits or trading receipts. Because the amount was made as an appreciation for the employee's association with the company and was linked to the cessation of that employment, it was characterised as a testimonial or ex gratia payment. On that basis, such a sum is treated as a capital receipt and not taxable as income. en-us Tue, 06 Jun 1967 00:00:00 +0530 Fri, 06 Feb 2009 18:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6883 A payment made on the termination of employment following nationalisation was examined to determine whether it was capital or revenue in the recipient's hands. The Court treated the receipt according to its real character, noting that it was not shown to be remuneration for past or future services, nor payment for business profits or trading receipts. Because the amount was made as an appreciation for the employee's association with the company and was linked to the cessation of that employment, it was characterised as a testimonial or ex gratia payment. On that basis, such a sum is treated as a capital receipt and not taxable as income. Case-Laws Income Tax Tue, 06 Jun 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6883