2023 (9) TMI 1490

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..... Gupta, Advocate, Ms. Akshara Shukla, Advocate. For the Respondent : Mr. Swarajit Roychoudhury, Advocate. ORDER The Court: A very interesting question of law is involved in this appeal. 2. It arises out of the two agreements between the appellant and the Government of Iraq in the 1980s, each for running a hotel in that country by the appellant. The first one was entered into on 8th Ju....

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...., learned senior advocate, appearing for the appellant submits that the agreement to operate each of the hotels on a long term basis, although on profit sharing terms and conditions, was to be taken as resulting in capital creation and not an ordinary trading transaction. On termination of the agreements by mutual consent, the compensation received tantamounted to receiving compensation for loss o....

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.... the business or deprive him of source of income, the receipt is revenue. The termination of the contract is taken as a normal incident of business. Where the trading structure is affected or source of income is depleted which is sought to be compensated by paying an amount that amount is to be taken as a capital receipt. 9. We have considered the submissions of learned counsel for the parties.....