Description:
Increase where the cancellation of a contract does not affect the trading structure of the business. Then the compensation received for such cancellation shall be treated as revenue receipt.
Ion Exchange (India) Ltd. vs. ITO (2010) 8 taxmann.com 295 (Mum.)
Source:
1. www.aiftponline.org
2.AIFTP TIMES Volume.No.2 February, 2011.Page No.7.
Our Comment:
Any compensation received for cancellation of contract which does not effect the trading structure is also taxable
