Dismissing the appeal of the revenue the Tribinal held that; compensation received on closure/ termination of business activity resulting in loss of source of income, impairing its profit making structure or sterilization of profit making apparatus is capital receipts . ( ITA No.157/RPR/2014, dt. 23/10/2018)(AY. 2011-12)
DCIT v. Rishabh Infrastructure Pvt. Ltd.( 2019) 174 DTR 357 / 196 TTJ 857 (Raipur)(Trib.), www.itatonline.org
S. 4 : Charge of income-tax–Capital or revenue-compensation received on closure / termination of business activity resulting in loss of source of income, impairing its profit making structure or sterilization of profit making apparatus is capital receipts. [S.28(i)]