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2019 (3) TMI 1110 - BOMBAY HIGH COURTCompensation received on termination of contract - income u/s 28(ii)(c) - termination of agreement with US based company - nature of receipt - revenue or capital receipt - relationship between the assessee and the US based company one in the nature of the agency? - CIT (A) hold that there was no principal agent relationship between the parties and the contract was on principal to principal basis and therefore section 28(ii)(c) would not apply also confirmed by Tribunal - HELD THAT:- Any such reference or the expression in the agreement, by itself would not be conclusive or determinative of relationship between the parties. The true character of the relationship from the agreement would have to be gathered from reading the document as a whole. This Court in case of Daruvala Bros. (P). Ltd. Vs. CIT [1970 (1) TMI 18 - BOMBAY HIGH COURT]had found that the agreement made between the parties, was of sole distribution and the agent was acting on his behalf and not on behalf of the principal. In that background, it was held that the agreement in question was not one of agency, though the document may have used such term to describe the relationship between the two sides. No error in view of the tribunal. - decided against revenue
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