https://www.taxtmi.com/caselaws?id=9325 Compensation paid for extinguishment of an income-producing right to levy excise duty was treated as a capital receipt, because the payment was made in lieu of destruction of the source itself and not for past services or discharge of a trading liability. The right to levy duty was held to be a capital asset, and when that source of income was sterilised, the compensation retained its capital character and was not assessable as income. The receipt was therefore held not liable to tax. en-us Thu, 05 Apr 1973 00:00:00 +0530 Mon, 22 Jun 2009 10:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9325 Compensation paid for extinguishment of an income-producing right to levy excise duty was treated as a capital receipt, because the payment was made in lieu of destruction of the source itself and not for past services or discharge of a trading liability. The right to levy duty was held to be a capital asset, and when that source of income was sterilised, the compensation retained its capital character and was not assessable as income. The receipt was therefore held not liable to tax. Case-Laws Income Tax Thu, 05 Apr 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9325