11 October 2008
one of my client had made a joint venture contract with a foreign party and sent Rs.4 crore but at last contract got cancelled and my client claimed compensation in addition to the contract.foreign party remitted Rs.5 crore (including contract price).can any one answar wheather Rs.1 crore is treated as revenue receipts or capital receipts.give some appropriate case law.
11 October 2008
Sec 28 (ii) Compensation taxable as business Income: Compensation or other payment for 1) Termination or modification of Managing agent's agreement in relation to an Indian Co. 2) Termination or modification of Managing agent's agreement in relation to any other Co., in India. 3) Termination or modification of contract relating to an agency in India. 4) Vesting of management of property or business with Govt/Corporation.