https://www.taxtmi.com/caselaws?id=37055 Compensation for compulsory vesting of management rights in a life insurance business was treated as a capital receipt because it represented deprivation of a profit-making asset, not trading profits, and was therefore excluded from business income. The statutory compensation formula under the nationalisation law was held not to control the separate task of determining fair market value on the relevant valuation date for capital gains; that value had to be assessed independently, so the assessee's approach was accepted. Written-off debts were also held deductible in computing business profits, as the relevant provision did not permit the revenue's attempted disallowance. en-us Mon, 29 Jan 1979 00:00:00 +0530 Fri, 26 Mar 2010 11:35:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37055 Compensation for compulsory vesting of management rights in a life insurance business was treated as a capital receipt because it represented deprivation of a profit-making asset, not trading profits, and was therefore excluded from business income. The statutory compensation formula under the nationalisation law was held not to control the separate task of determining fair market value on the relevant valuation date for capital gains; that value had to be assessed independently, so the assessee's approach was accepted. Written-off debts were also held deductible in computing business profits, as the relevant provision did not permit the revenue's attempted disallowance. Case-Laws Income Tax Mon, 29 Jan 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37055