https://www.taxtmi.com/caselaws?id=191733 Payments received under a restrictive covenant were treated as consideration for agreeing not to compete in the petroleum business, not as commission or salary, because no service, agency, or employment relationship existed. They were also not business profits, as the amounts did not arise from business carried on by the recipient, and not income from other sources, since the arrangement showed no intention to create a true periodic income; the annual instalments merely spread a capital sum over time. The recurring payments were therefore held to be a capital receipt and not chargeable to income-tax under the heads considered. en-us Tue, 22 Jul 1941 00:00:00 +0530 Fri, 14 Apr 2017 18:38:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191733 Payments received under a restrictive covenant were treated as consideration for agreeing not to compete in the petroleum business, not as commission or salary, because no service, agency, or employment relationship existed. They were also not business profits, as the amounts did not arise from business carried on by the recipient, and not income from other sources, since the arrangement showed no intention to create a true periodic income; the annual instalments merely spread a capital sum over time. The recurring payments were therefore held to be a capital receipt and not chargeable to income-tax under the heads considered. Case-Laws Income Tax Tue, 22 Jul 1941 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191733