https://www.taxtmi.com/caselaws?id=276483 Instalment compensation received on termination of managing agency agreements was held to be taxable under section 10(5A) of the Indian Income-tax Act, 1922. The agreements made payment conditional on compliance with restrictive covenants and allowed the principal to stop future instalments on breach, so the full compensation did not accrue on execution. The amounts became due only when each instalment fell payable, and their receipt was connected with termination of the managing agency. The reference was answered in the affirmative, and the unpaid balance described as outstanding indemnities supported the character of the sums as compensation rather than repayment of an existing debt. en-us Tue, 24 Oct 1961 00:00:00 +0530 Mon, 12 Nov 2018 17:37:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276483 Instalment compensation received on termination of managing agency agreements was held to be taxable under section 10(5A) of the Indian Income-tax Act, 1922. The agreements made payment conditional on compliance with restrictive covenants and allowed the principal to stop future instalments on breach, so the full compensation did not accrue on execution. The amounts became due only when each instalment fell payable, and their receipt was connected with termination of the managing agency. The reference was answered in the affirmative, and the unpaid balance described as outstanding indemnities supported the character of the sums as compensation rather than repayment of an existing debt. Case-Laws Income Tax Tue, 24 Oct 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276483