Assessee has shown the compensation of Rs 40 crores received from BNP Paribas for discontinuing commodity trading business  shown as towards loss of source of income/profit earning apparatus and therefore it was a non-taxable capital receipt. AO held that the compensation is taxable as business income. In appeal CIT(A)  confirmed the addition and also held that the  amount  to be taxable under section 28 (ii) (c ) of the Act. Dismissing the appeal of the assesssee the  Tribunal held that new company GCL was incorporated under same group by common promoters whereby assessee’s commodity trading was transferred entirely along with its clientele to new floated company GCL and in eyes of clients, business was carried on in same name .Accordingly the  profit making apparatus of assessee-company/group company was not impaired by discontinuance of commodity trade business of assessee per se therefore the  amount received as compensation could not be termed as a capital receipt. Tribunal also held that  going by plain meaning of section 28(va), amount of compensation received for not carrying any activity in relation to any business (i.e. commodity trading business) would be taxable under section 28(va) of the Act. Tribunal also held that  when there was no principal and agent relationship between assessee and parent company, compensation received by assessee for discontinuing commodity trading was not from parent company and was not in lieu of surrender of any agency, compensation did not fall within ambit of taxation under section 28(ii)(c).  ( AY.2009-10)