https://www.taxtmi.com/caselaws?id=289284 A sum received for surrender and release of rights under a royalty agreement was treated as a capital receipt rather than a trading receipt because the evidence showed the agreement had been appropriated from stock-in-trade to a permanent income-producing asset. The board's treatment of the royalty interest, together with the accounts and balance-sheet entries, supported the conclusion that it had become fixed capital well before the receipt arose. Mere passage of time was insufficient on its own, but on the facts the only reasonable inference was that the asset had been converted into fixed capital. The assessment therefore could not stand. en-us Mon, 22 Jul 1968 00:00:00 +0530 Thu, 23 Jul 2020 17:13:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=289284 A sum received for surrender and release of rights under a royalty agreement was treated as a capital receipt rather than a trading receipt because the evidence showed the agreement had been appropriated from stock-in-trade to a permanent income-producing asset. The board's treatment of the royalty interest, together with the accounts and balance-sheet entries, supported the conclusion that it had become fixed capital well before the receipt arose. Mere passage of time was insufficient on its own, but on the facts the only reasonable inference was that the asset had been converted into fixed capital. The assessment therefore could not stand. Case-Laws Income Tax Mon, 22 Jul 1968 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=289284