https://www.taxtmi.com/caselaws?id=7045 Compensation received on termination of a managing agency agreement is treated as business income under section 10(5A) of the Income-tax Act, 1922. The discussion explains that "termination" is not confined to a formal mutual end of the arrangement; it can include cessation of the agency under recognised contractual and legal modes, including revocation and operation of law. It also notes that the deeming provision applies even if the managing agency business had ceased when the compensation was credited or received, because the statute characterises such compensation as profits and gains of business for tax purposes. en-us Tue, 18 Jul 1967 00:00:00 +0530 Sun, 08 Feb 2009 10:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7045 Compensation received on termination of a managing agency agreement is treated as business income under section 10(5A) of the Income-tax Act, 1922. The discussion explains that "termination" is not confined to a formal mutual end of the arrangement; it can include cessation of the agency under recognised contractual and legal modes, including revocation and operation of law. It also notes that the deeming provision applies even if the managing agency business had ceased when the compensation was credited or received, because the statute characterises such compensation as profits and gains of business for tax purposes. Case-Laws Income Tax Tue, 18 Jul 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7045