https://www.taxtmi.com/caselaws?id=49382 Compensation linked to cancellation of an agency was treated as revenue because the termination did not impair the trading structure or destroy the source of income; it merely removed one trading avenue in the ordinary course of business. The agency was only one among several lines of business, was terminable at will, and the payment was calculated by reference to expected commission and profits during the transition period. No part of the amount was shown to be attributable to a restrictive covenant or loss of goodwill, as there was no enforceable non-compete undertaking or supporting material. The receipt was therefore assessable as income. en-us Fri, 01 May 1964 00:00:00 +0530 Fri, 22 Aug 2014 12:49:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49382 Compensation linked to cancellation of an agency was treated as revenue because the termination did not impair the trading structure or destroy the source of income; it merely removed one trading avenue in the ordinary course of business. The agency was only one among several lines of business, was terminable at will, and the payment was calculated by reference to expected commission and profits during the transition period. No part of the amount was shown to be attributable to a restrictive covenant or loss of goodwill, as there was no enforceable non-compete undertaking or supporting material. The receipt was therefore assessable as income. Case-Laws Income Tax Fri, 01 May 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49382