https://www.taxtmi.com/caselaws?id=277173 Compensation paid for the premature termination of an agreement was treated as a capital receipt where the payment was made on surrender of rights under the contract and destroyed the business framework rather than representing a trading receipt from operations. The receipt was not a recurrent return, nor the product of business activity in the year received; its character depended on the nature of the right given up, not on any notional estimate of future profits. The sum was therefore held not assessable as income under the Indian Income-tax Act. en-us Fri, 21 Apr 1950 00:00:00 +0530 Tue, 27 Nov 2018 18:19:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277173 Compensation paid for the premature termination of an agreement was treated as a capital receipt where the payment was made on surrender of rights under the contract and destroyed the business framework rather than representing a trading receipt from operations. The receipt was not a recurrent return, nor the product of business activity in the year received; its character depended on the nature of the right given up, not on any notional estimate of future profits. The sum was therefore held not assessable as income under the Indian Income-tax Act. Case-Laws Income Tax Fri, 21 Apr 1950 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277173