https://www.taxtmi.com/caselaws?id=191734 Compensation for termination of a terminable-at-will explosives agency was held to be revenue in nature because the agency formed only part of a diversified business and its closure did not destroy a distinct capital asset or the profit-making structure. The payment was treated as a substitute for future trading profits and therefore taxable as business income. No part of the compensation was shown to have been paid for a restrictive covenant, as the record disclosed no formal undertaking or supporting material. On these facts, the receipt remained within the revenue field and no capital exemption was available. en-us Wed, 10 Jan 1962 00:00:00 +0530 Fri, 14 Apr 2017 18:48:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191734 Compensation for termination of a terminable-at-will explosives agency was held to be revenue in nature because the agency formed only part of a diversified business and its closure did not destroy a distinct capital asset or the profit-making structure. The payment was treated as a substitute for future trading profits and therefore taxable as business income. No part of the compensation was shown to have been paid for a restrictive covenant, as the record disclosed no formal undertaking or supporting material. On these facts, the receipt remained within the revenue field and no capital exemption was available. Case-Laws Income Tax Wed, 10 Jan 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191734