https://www.taxtmi.com/caselaws?id=192235 Compensation paid on termination of a managing agency was treated as a capital receipt because it was paid for surrender of an income-producing capital asset forming part of the assessee's business structure, not as trading income. Continued existence of ancillary rights under the agreement did not alter that character. The amount was also outside section 12B of the Income-tax Act, 1922, because the transaction was a surrender or extinguishment of rights and did not amount to a sale, exchange or transfer within the charging provision. The assessee therefore succeeded on both the capital-receipt and capital-gains questions. en-us Fri, 17 Sep 1954 00:00:00 +0530 Sat, 20 May 2017 17:47:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=192235 Compensation paid on termination of a managing agency was treated as a capital receipt because it was paid for surrender of an income-producing capital asset forming part of the assessee's business structure, not as trading income. Continued existence of ancillary rights under the agreement did not alter that character. The amount was also outside section 12B of the Income-tax Act, 1922, because the transaction was a surrender or extinguishment of rights and did not amount to a sale, exchange or transfer within the charging provision. The assessee therefore succeeded on both the capital-receipt and capital-gains questions. Case-Laws Income Tax Fri, 17 Sep 1954 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=192235