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2013 (10) TMI 518 - ITAT DELHICapital or Revenue receipt - Compensation received was for loss of "source of income" - CIT held it as capital receipt - Held that:- Where on a consideration of the circumstances, payment is made to compensate a person for cancellation of a contract which does not affect the trading structure of his business, nor deprive him of what in substance is his source of income, termination of the contract being a normal incident of the business, and such cancellation leaves him free to carry on his trade (freed from the contract terminated) the receipt is revenue: Where by the cancellation of an agency source of the assessee's income, the payment made to compensate for cancellation of the agency agreement is normally a capital receipt - Decided against Revenue.
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