https://www.taxtmi.com/caselaws?id=7003 Compensation received for premature cancellation of a profitable managing agency was treated as a revenue receipt where the assessee's business consisted largely of managing agencies and the termination did not impair its trading structure or destroy its source of income. The payment was calculated by reference to expected profits and operated as a substitute for future earnings, so the cancellation was regarded as a normal incident of the business rather than sterilisation of a capital asset. The amount was therefore assessable to income-tax as revenue income. en-us Mon, 19 Sep 1966 00:00:00 +0530 Sat, 07 Feb 2009 19:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7003 Compensation received for premature cancellation of a profitable managing agency was treated as a revenue receipt where the assessee's business consisted largely of managing agencies and the termination did not impair its trading structure or destroy its source of income. The payment was calculated by reference to expected profits and operated as a substitute for future earnings, so the cancellation was regarded as a normal incident of the business rather than sterilisation of a capital asset. The amount was therefore assessable to income-tax as revenue income. Case-Laws Income Tax Mon, 19 Sep 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7003