https://www.taxtmi.com/caselaws?id=7106 Periodic payments under a transfer deed were treated as consideration for the sale of trade marks, goodwill, business interests, stock-in-trade and related rights, rather than as compensation for an independent restrictive covenant. The deed described the monthly payment as part of the sale consideration and placed the tax burden on the vendor, which supported revenue character. A clause allowing stoppage of payment on breach of covenants was only a term in terrorem and did not change the substance of the arrangement. On those facts, the recurring payment was an annuity-like revenue receipt and not a capital receipt. en-us Wed, 26 Apr 1967 00:00:00 +0530 Tue, 10 Feb 2009 18:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7106 Periodic payments under a transfer deed were treated as consideration for the sale of trade marks, goodwill, business interests, stock-in-trade and related rights, rather than as compensation for an independent restrictive covenant. The deed described the monthly payment as part of the sale consideration and placed the tax burden on the vendor, which supported revenue character. A clause allowing stoppage of payment on breach of covenants was only a term in terrorem and did not change the substance of the arrangement. On those facts, the recurring payment was an annuity-like revenue receipt and not a capital receipt. Case-Laws Income Tax Wed, 26 Apr 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7106