https://www.taxtmi.com/caselaws?id=768216 The ITAT Delhi ruled in favor of the assessee regarding compensation received from Disney for termination of merchandising and distribution rights. The tribunal held that section 28(ii)(b) was not applicable as the assessee was not a managing agency within the statutory definition. The compensation was characterized as capital receipt, not taxable income. Additionally, the tribunal allowed the assessee's claim regarding share losses, rejecting the department's attempt to treat them as speculative under section 73 Explanation, based on previous tribunal decisions and the assessee's business records showing no trading activity in shares. en-us Tue, 10 Dec 2024 00:00:00 +0530 Thu, 03 Apr 2025 07:50:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768216 The ITAT Delhi ruled in favor of the assessee regarding compensation received from Disney for termination of merchandising and distribution rights. The tribunal held that section 28(ii)(b) was not applicable as the assessee was not a managing agency within the statutory definition. The compensation was characterized as capital receipt, not taxable income. Additionally, the tribunal allowed the assessee's claim regarding share losses, rejecting the department's attempt to treat them as speculative under section 73 Explanation, based on previous tribunal decisions and the assessee's business records showing no trading activity in shares. Case-Laws Income Tax Tue, 10 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768216