https://www.taxtmi.com/caselaws?id=276792 A payment received on cancellation of a commercial contract was held to be revenue in nature because it represented the profits the assessee might have earned under the contract rather than the price of a capital asset. The contract was entered into in the ordinary course of business, the assessee remained free to continue its activity, and the exclusion of competition was treated as an ordinary incident of trading arrangements, not the creation of a capital structure or enduring asset. The receipt was therefore assessable as income and not as capital. en-us Fri, 26 May 1939 00:00:00 +0530 Sat, 17 Nov 2018 14:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276792 A payment received on cancellation of a commercial contract was held to be revenue in nature because it represented the profits the assessee might have earned under the contract rather than the price of a capital asset. The contract was entered into in the ordinary course of business, the assessee remained free to continue its activity, and the exclusion of competition was treated as an ordinary incident of trading arrangements, not the creation of a capital structure or enduring asset. The receipt was therefore assessable as income and not as capital. Case-Laws Income Tax Fri, 26 May 1939 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276792