1941 (3) TMI 21

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....he Assessee : L. C. Graham Dixon JUDGMENT The facts in this case are that the respondent Company introduced a company known as Motor Components (Birmingham), Ltd., to Rolls-Royce, Ltd.; and the Components Company agreed to pay commission to the respondent Company on all the aero-valves supplied by them to Rolls-Royce, Ltd. The sums so received by the respondents were brought into their profi....

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....9;s ordinary business was to polish steel and not introduce companies to each other ; but it is not suggested that the contract was ultra vires, or that the sums received thereunder were not revenue receipts. But it is said they should have been assessed under Case VI and not under Case I, and that different considerations, therefore, apply. In my opinion any intra vires contract which is of a rev....

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....ome a capital asset because it is a contract in a new or unusual lines of business (cf. Bush, Beach & Gent, Ltd. v. Road [1940] 81 I.T.R. Suppl. 36; 22 Tax Cas. 519). There was, however, nothing of a capital nature in this contract. No money was spent to secure it; no capital asset was acquired to carry it out; its cancellation was only an ordinary method of modifying and realising the profit t....