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2016 (12) TMI 499 - HC - Income TaxCompensation received on account of the cancellation of contract - Held that:- The assessee was having other sources of income and therefore the termination of the contract with BCCL was nothing but was normal incident of business. Other than that the assessee was free to carry on his trade because there was no restriction on the assessee that he would not be able to execute any other contract and therefore the tribunal came to the conclusion that the money received by the assessee from the cancellation of the contract was a revenue receipt and not a capital receipt. The income received from the cancellation of the contract and the interest thereon received would all constitute revenue receipt in the hands of the assessee. - Decided against assessee
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