https://www.taxtmi.com/caselaws?id=20310 A receipt obtained on surrender of leasehold and film-exhibition rights before the cinema business came into existence was treated as capital in nature, not revenue. Because the cinema hall was incomplete and no exhibition activity had commenced, the amount did not spring from an existing business source or from the revenue field. A sum can be taxed as business income only where it arises from an existing business or a source of revenue character; where no business has started, the receipt retains a capital character. The amount was therefore held not taxable as revenue receipt, in favour of the assessee. en-us Fri, 04 Mar 1994 00:00:00 +0530 Fri, 13 Nov 2009 11:56:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20310 A receipt obtained on surrender of leasehold and film-exhibition rights before the cinema business came into existence was treated as capital in nature, not revenue. Because the cinema hall was incomplete and no exhibition activity had commenced, the amount did not spring from an existing business source or from the revenue field. A sum can be taxed as business income only where it arises from an existing business or a source of revenue character; where no business has started, the receipt retains a capital character. The amount was therefore held not taxable as revenue receipt, in favour of the assessee. Case-Laws Income Tax Fri, 04 Mar 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20310