2003 (11) TMI 41

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....aw involved in this case are as follows: "(i) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the sum of Rs. 8.6lakhs received by the assessee and covered by the termination agreement cannot constitute the income of the assessee? (ii) Whether, on the facts and in the circumstances of the case and having regard to the existing pro....

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....he Tribunal, on further appeal, treated it as a capital receipt and not liable for taxation. Now, we have to see as to whether it is a. taxable revenue receipt or a capital receipt? Admittedly, the said amount of Rs. 8.6 lakhs was part of the receipt of Rs. 42 lakhs, towards compensation for cost of trained manpower (Rs. 11 lakhs), towards compensation for cost of dealers/customers network (Rs. ....

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....ransfer of profit earning apparatus, which will constitute the source for income, profit or gain. The receiver assessee would, as a result, be precluded in future from exploiting the source of income by utilising the profit-earning apparatus. When such a tie with the above apparatus is totally snapped thus making the assessee crippled or impaired or paralysed in getting any income out of the sourc....