https://www.taxtmi.com/caselaws?id=49679 Cancellation of film distribution agreements was analysed as a question whether the payment received was capital or revenue in nature. The majority view was that the agreements were made in the ordinary course of the assessee's distribution business, and their cancellation only adjusted the business relationship without sale, surrender, or sterilisation of a capital asset; the receipt therefore represented compensation for lost commission and was treated as revenue income assessable to tax. A dissenting opinion viewed the arrangements as composite financing and distribution rights involving capital assets, so cancellation for consideration would have produced a capital receipt. en-us Wed, 14 Mar 1956 00:00:00 +0530 Thu, 02 Jul 2026 12:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=49679 Cancellation of film distribution agreements was analysed as a question whether the payment received was capital or revenue in nature. The majority view was that the agreements were made in the ordinary course of the assessee's distribution business, and their cancellation only adjusted the business relationship without sale, surrender, or sterilisation of a capital asset; the receipt therefore represented compensation for lost commission and was treated as revenue income assessable to tax. A dissenting opinion viewed the arrangements as composite financing and distribution rights involving capital assets, so cancellation for consideration would have produced a capital receipt. Case-Laws Income Tax Wed, 14 Mar 1956 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=49679