https://www.taxtmi.com/caselaws?id=21220 Compensation paid to a partner for reducing his share in a reconstituted firm was treated as a capital receipt because it related to impairment of an income-yielding asset, namely the partner's share in the firm. The partner's interest was reduced from 36% to 5%, and there was no material showing that he carried on entering into partnerships as a trading activity. The payment was distinguished from compensation received in the ordinary course of business on termination of a trading arrangement. The receipt was therefore characterised as compensation for loss of a capital asset and held not taxable as revenue income. en-us Wed, 12 Aug 1992 00:00:00 +0530 Fri, 20 Nov 2009 18:20:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21220 Compensation paid to a partner for reducing his share in a reconstituted firm was treated as a capital receipt because it related to impairment of an income-yielding asset, namely the partner's share in the firm. The partner's interest was reduced from 36% to 5%, and there was no material showing that he carried on entering into partnerships as a trading activity. The payment was distinguished from compensation received in the ordinary course of business on termination of a trading arrangement. The receipt was therefore characterised as compensation for loss of a capital asset and held not taxable as revenue income. Case-Laws Income Tax Wed, 12 Aug 1992 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21220