AB & Co. received ₹ 2,00,000 as compensation from CD & Co. for premature termination of contract of agency. Amount so received is –
A. Capital receipt and taxable
B. Capital receipt and not taxable
C. Revenue receipt and taxable
D. Revenue receipt and not taxable
Answer:C
AB & Co. received ₹ 2,00,000 as compensation from CD & Co. for premature termination of contract of agency. Amount so received is –
A. Capital receipt and taxable B. Capital receipt and not taxable C. Revenue receipt and taxable D. Revenue receipt and not taxable