https://www.taxtmi.com/caselaws?id=37477 The High Court held that damages received by a partnership firm were taxable as revenue receipts for the assessment year 1970-71. The court found that the damages were akin to commission income the firm would have earned under the agreement, making it subject to tax under Section 28(ii) of the Income Tax Act. Despite the firm's argument that the damages were for termination of an agency agreement and should be treated as a capital receipt, the court disagreed. The judgment highlights the significance of adhering to consistent accounting practices in determining tax obligations related to contractual damages. en-us Fri, 03 Aug 1979 00:00:00 +0530 Tue, 30 Mar 2010 10:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37477 The High Court held that damages received by a partnership firm were taxable as revenue receipts for the assessment year 1970-71. The court found that the damages were akin to commission income the firm would have earned under the agreement, making it subject to tax under Section 28(ii) of the Income Tax Act. Despite the firm's argument that the damages were for termination of an agency agreement and should be treated as a capital receipt, the court disagreed. The judgment highlights the significance of adhering to consistent accounting practices in determining tax obligations related to contractual damages. Case-Laws Income Tax Fri, 03 Aug 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37477