https://www.taxtmi.com/caselaws?id=11241 The court determined that the sum received by the assessee on termination of distributorship, amounting to Rs. 8.6 lakhs, should be classified as a capital receipt rather than income. This decision was based on the complete severance of the income source due to the termination agreement, which led to the relinquishment of control over trained manpower and customer network. The court emphasized that the termination significantly impacted the profit-making structure of the assessee, supported by the restrictive covenant entered into. Citing relevant precedents, the court ruled in favor of the assessee, deeming the receipt as a capital one. en-us Mon, 24 Nov 2003 00:00:00 +0530 Mon, 03 Aug 2009 08:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11241 The court determined that the sum received by the assessee on termination of distributorship, amounting to Rs. 8.6 lakhs, should be classified as a capital receipt rather than income. This decision was based on the complete severance of the income source due to the termination agreement, which led to the relinquishment of control over trained manpower and customer network. The court emphasized that the termination significantly impacted the profit-making structure of the assessee, supported by the restrictive covenant entered into. Citing relevant precedents, the court ruled in favor of the assessee, deeming the receipt as a capital one. Case-Laws Income Tax Mon, 24 Nov 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11241