https://www.taxtmi.com/caselaws?id=754931 Compensation received on termination of a hotel operating licence was treated as revenue in nature because the arrangement was a trading contract entered into in the ordinary course of business. No right, title or interest in the hotel property was created in favour of the operator, and the licence fee was linked to gross turnover. The settlement and consent terms merely ended that commercial arrangement and did not involve transfer or extinguishment of a capital asset or enduring source of income. The receipt was therefore assessable as business income and not as long-term capital gain. en-us Thu, 27 Jun 2024 00:00:00 +0530 Tue, 02 Jul 2024 12:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754931 Compensation received on termination of a hotel operating licence was treated as revenue in nature because the arrangement was a trading contract entered into in the ordinary course of business. No right, title or interest in the hotel property was created in favour of the operator, and the licence fee was linked to gross turnover. The settlement and consent terms merely ended that commercial arrangement and did not involve transfer or extinguishment of a capital asset or enduring source of income. The receipt was therefore assessable as business income and not as long-term capital gain. Case-Laws Income Tax Thu, 27 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754931