https://www.taxtmi.com/caselaws?id=25905 The Tribunal ruled in favor of the assessee on all issues. The compensation received for relinquishing partnership rights was not taxable as revenue receipt or capital gains. The surplus from the disposal of the undertaking was not considered business income. The compensation components were reasonably allocated. No capital gains tax was applicable on retirement from partnership. Compensation for the restrictive covenant was deductible under section 37. The penalty under section 271(1)(c) was deemed unsustainable due to lack of contumacious conduct. en-us Thu, 28 Nov 1985 00:00:00 +0530 Mon, 01 Feb 2010 15:57:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25905 The Tribunal ruled in favor of the assessee on all issues. The compensation received for relinquishing partnership rights was not taxable as revenue receipt or capital gains. The surplus from the disposal of the undertaking was not considered business income. The compensation components were reasonably allocated. No capital gains tax was applicable on retirement from partnership. Compensation for the restrictive covenant was deductible under section 37. The penalty under section 271(1)(c) was deemed unsustainable due to lack of contumacious conduct. Case-Laws Income Tax Thu, 28 Nov 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25905