https://www.taxtmi.com/caselaws?id=49599 Compensation received for agreeing to a substantial reduction in managing agency remuneration was treated as a capital receipt, not revenue income. The payment was made to release the company from onerous remuneration terms, and the reduction from a higher profit share to a lower one caused a real and enduring injury to the assessee's profit-making structure. The continued existence of the managing agency did not alter the character of the receipt, because the payment compensated for deterioration of the capital apparatus rather than for ordinary income loss. The amount was therefore not liable to tax as revenue income. en-us Tue, 04 Aug 1959 00:00:00 +0530 Wed, 03 Sep 2014 22:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49599 Compensation received for agreeing to a substantial reduction in managing agency remuneration was treated as a capital receipt, not revenue income. The payment was made to release the company from onerous remuneration terms, and the reduction from a higher profit share to a lower one caused a real and enduring injury to the assessee's profit-making structure. The continued existence of the managing agency did not alter the character of the receipt, because the payment compensated for deterioration of the capital apparatus rather than for ordinary income loss. The amount was therefore not liable to tax as revenue income. Case-Laws Income Tax Tue, 04 Aug 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49599