https://www.taxtmi.com/caselaws?id=277218 Compensation received for the compulsory termination of distribution contracts was treated as a capital receipt, not assessable as business income. The court applied the principle that a receipt is taxable only if it falls within a charging head of income and constitutes income, profit or gain; compensation for cessation of contract rights is not trading profit. The fact that the assessee continued other business did not change the character of the payment, because the amount had no connection with the profits or gains of that continuing business. The receipt was therefore held outside the scope of taxable revenue income and not chargeable under the Income-tax Act. en-us Wed, 26 Sep 1951 00:00:00 +0530 Thu, 29 Nov 2018 12:06:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=277218 Compensation received for the compulsory termination of distribution contracts was treated as a capital receipt, not assessable as business income. The court applied the principle that a receipt is taxable only if it falls within a charging head of income and constitutes income, profit or gain; compensation for cessation of contract rights is not trading profit. The fact that the assessee continued other business did not change the character of the payment, because the amount had no connection with the profits or gains of that continuing business. The receipt was therefore held outside the scope of taxable revenue income and not chargeable under the Income-tax Act. Case-Laws Income Tax Wed, 26 Sep 1951 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=277218