Compensation for business termination resulting in Income Source Loss is Capital Receipt

DCIT Vs Rishabh Infrastructure Pvt. Ltd. (ITAT Raipur)

Conclusion: Compensation received by assessee on closure of business activity was for sterilization of the profit making apparatus of assessee-company; therefore, the same was capital receipt.

Held: In the case of Karam Chand Thapar & Brokers (P) Ltd. Vs. CIT reported in 80 167 it was held that where, on a consideration of the circumstances, payment is made to compensate a person for cancellation of a contract which does not a

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