Ms. Payal Kapur vs Asstt. C.I.T. on 18 November, 2005
In the case of Gangadhar Baijnath v. CIT, U.P. 86 ITR 19 (S.C.), their Lordships of Supreme Court held that compensation received for relinquishment of interest in partnership was a revenue receipt. "Such contracts are liable in the ordinary course of business, to be altered or terminated on terms and any payment received in settlement of the rights as a result of the termination of the contract, really represents the profits which the assessee would have made had the contract been performed.