https://www.taxtmi.com/caselaws?id=276895 Dividends from plantation companies were held not to be agricultural income merely because the companies carried on agriculture, so the exemption under Section 4(3) was denied. Compensation received on termination of the managing agency and connected commercial rights was treated as a trading receipt because the payment arose from ordinary business contracts and did not represent loss or sterilisation of a capital structure. For reserve treatment under rule 2(1) of Sch. II of the Business Profits Tax Act, the correct test was whether profits had been specifically appropriated for a defined purpose on the crucial date by a competent authority; mere undistributed profits were insufficient, and the issue was sent back for fresh factual determination. en-us Wed, 03 Sep 1958 00:00:00 +0530 Mon, 24 Feb 2025 11:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276895 Dividends from plantation companies were held not to be agricultural income merely because the companies carried on agriculture, so the exemption under Section 4(3) was denied. Compensation received on termination of the managing agency and connected commercial rights was treated as a trading receipt because the payment arose from ordinary business contracts and did not represent loss or sterilisation of a capital structure. For reserve treatment under rule 2(1) of Sch. II of the Business Profits Tax Act, the correct test was whether profits had been specifically appropriated for a defined purpose on the crucial date by a competent authority; mere undistributed profits were insufficient, and the issue was sent back for fresh factual determination. Case-Laws Income Tax Wed, 03 Sep 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276895