https://www.taxtmi.com/caselaws?id=49381 Compensation for surrender of a managing agency is treated as a capital receipt where the agency forms part of the holder's enduring profit-making structure and the payment is made for parting with that asset rather than for trading profit. The decisive test is whether the amount is paid for loss of a capital asset or as income from a commercial transaction. On the stated facts, the assessee gave up rights of enduring value under a scheme to transfer the agency to another party, and the continued holding of other agencies did not change the character of the receipt. The amount was therefore capital in nature and not taxable as revenue income. en-us Fri, 01 May 1964 00:00:00 +0530 Mon, 20 Oct 2014 17:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49381 Compensation for surrender of a managing agency is treated as a capital receipt where the agency forms part of the holder's enduring profit-making structure and the payment is made for parting with that asset rather than for trading profit. The decisive test is whether the amount is paid for loss of a capital asset or as income from a commercial transaction. On the stated facts, the assessee gave up rights of enduring value under a scheme to transfer the agency to another party, and the continued holding of other agencies did not change the character of the receipt. The amount was therefore capital in nature and not taxable as revenue income. Case-Laws Income Tax Fri, 01 May 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49381