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Taxability of compensation amount received by an assessee for termination of its agreement
Case Law Details
- Case Name
- Chemet Vs. Addl. CIT (ITAT Mumbai)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2000- 2001
- Courts
- All ITAT, ITAT Mumbai
RELEVANT EXTRACTS:
6. However, the mere fact that the agreement was not an agency agreement is not a decisive factor as to the tax ability of the amount received on termination of the agreement. Even if the agreement was not an agency agreement and it was a simple contract, the amount received on termination of the Contract can still be taxed as a revenue receipt. Merely because it does not come under the purview of section 28(ii)(c ) does not mean that it cannot be taxed at all. Under the provisions of section 28(ii)(c ), compensation is taxable irrespective of whether it is a revenue receipt...
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