Court : Income Tax Appellate Tribunal ITAT Delhi
Reported in : (2008)113TTJ(Delhi)767
..... the chargeability of which was in question in the decisions cited for the respondent, were all payments made as compensation for the termination of agency contracts, whereas we are concerned with an amount paid as solatium for the cancellation of a contract entered into by a businessman in the ordinary course of his business, and that, in our judgment, makes all the difference ..... and constitutes only source of its business income and it is economically dependent on the assessee. iii). the distribution agreement between the assessee and amadeus india is essentially an agency contract for three reasons: a) under the distribution agreement the assessee has supplied huge quantities of equipment to amadeus india but not by way of sale. the assessee continues to ..... in the character of the receipt. in an agency contract, the actual business consists in the dealings between the principal and his customers, and the work of the agent is only to bring about that business. in other words ..... its obligation under the distribution agreement efficiently. such authority does not, however, result in altering the nature of an independent service contract to a contract of agency. the definition of "subscriber" in the distribution agreement only states that the person contracting aipl to receive access to the appellant's crs would be a subscriber. the said definition cannot be read to mean .....Tag this Judgment!
Court : Supreme Court of India
Reported in : AIR1959SC291; 35ITR148(SC); 1959Supp(1)SCC110; Supp1SCR110
..... paid as solatium for the cancellation of a contract entered into by a businessman in the ordinary course of his business, and that, in our judgment, makes all the difference in ..... the only business of the respondent and the contract had at the time of the settlement still a period of 23 years to run. it will be seen that the receipts, the chargeability of which was in question in the decisions cited for the respondent, were all payments made as compensation for the termination of agency contracts, whereas we are concerned with an amount ..... cas. 608 and the commissioner of income-tax and excess profits tax, madras v. the south india pictures ltd., karaikudi  s.c.r. 223. the fact is that an agency contract which has the character of a capital asset in the hands of one person may assume the character of a trading receipt in the hands of another, as, for example ..... for its termination would be a revenue receipt, irrespective of whether its performance was to consist of a single act or a series of acts spread over a period, and in this respect, it differs from an agency agreement. 23. in holding that compensation paid on the cancellation of a trading contract differs in character from compensation paid for cancellation of an agency contract, we .....Tag this Judgment!
Court : Income Tax Appellate Tribunal ITAT Delhi
..... the chargeability of which was in question in the decisions cited for the respondent, were all payments made as compensation for the termination of agency contracts, whereas we are concerned with an amount paid as solatium for the cancellation of a contract entered into by a businessman in the ordinary course of his business, and that, in our judgment, makes all the difference in ..... the character of the receipt. in an agency contract, the actual business consists in the dealings between the principal and his customers, and the work of the agent is only to bring about that business. in other words, ..... under this agreement. the categories of information which may be required include, but are not limited to: (c) a list of subscriber contracts terminated or due to expire in the forthcoming year; (h) the standard terms of any subscriber contracts, including the amount and terms of any payment. 14.4 after consultation with galileo, inter globe shall produce an annual marketing plan ..... is a control of the appellant over interglobe as on termination of the distribution agreement, interglobe's contracts will get assigned to the appellant is erroneous. this clause applies only upon termination of the distributorship agreement. it is a standard clause to protect a contracting party in the event of an agreement being terminated on account of the insolvency of the other party. it .....Tag this Judgment!
Court : Punjab and Haryana
Reported in : 63ITR394(P& H)
..... paid or has been received in respect of fixed or circulating capital. to determine that question, particularly in case of payments received on termination of agency contracts, the enquiry to be made is, were the cancelled contracts ordinary commercial contracts made in the course of carrying on the taxpayers trade or were they such a affected the whole structure of the profit-making apparatus ..... the chargeability of which was in question in the decisions cited for the respondent, were all payments made was compensation for the terminations of agency contracts, whereas we are concerned with an amount paid as solatium for the cancellation of a contract entered into by a businessman in the ordinary course of his business, and that, in out judgment, makes all the difference ..... a normal incident of the business, and much cancellation leaves him free to carry on his trade (freed from the contract terminated) the receipts revenue. where by the cancellation of on agency the trading structure of the assessee is impaired, or such cancellation results in loss of what may be regarded as the source of the assessees income, the payment ..... after the agreement of august, 1946, the company had entered into a sub-agency agreement with goodwill pictures. in view of the termination of the agreement between the producer and the company, the latter was not in a position to carry out its obligation under the contract with goodwill pictures and, consequently with a view to settle the matter with goodwill .....Tag this Judgment!
Court : Mumbai
Reported in : (1982)84BOMLR608
..... their direct employees. if on the other hand they continue to employ the security guards through the agencies, the only remedy they have is to call upon the agency to change the security guard concerned and in case it fails to do so, to terminate the agencies' contract. compared to the situation in which the employers are at present or would find themselves if they ..... are not monthly workers and monthly workers are defined as those who are engaged by the registered employers or group of such employers on monthly basis under a contract which requires for its termination at least one month's notice on either side. the monthly workers raised an industrial dispute with regard to the payment of bonus and incremental scales of pay ..... time, the employers have to be content with the security guards supplied by an agency on account of his contract with such agency. it is true that even during this period, the employer, if he has reserved such right, can terminate the contract. it may be mentioned in this connection that no agency or employer produced - any agreement before the court and therefore it was not ..... possible to ascertain what exactly were the terms of the agreement between the employers and the agencies. but there is also a provision under clause 31 of the .....Tag this Judgment!
Court : Delhi
Reported in : 48(1992)DLT140; 1992(1)DRJ24
..... government of india is clear also from the various stands taken by the bofors including their subsequent claim made sometime after april, 1987, that consequent upon this prohibition, they had terminated their agency contracts with agents abroad also purportedly during january-march, 1986 and paid them, purportedly, 'winding up costs'.(26) in para 8 of the fir, it has been alleged that ..... or bribes having been paid to anyone. (xii) mere suspicion as regards existence of middleman and/or payment of commission does not constitute sufficient ground for initiating action to terminate the contract with bofors or to raise claims for the reimbursement to government of payments made by bofors to the three foreign companies. this is also the view of the attorney- ..... made payments out of its own resources as alleged by the cbi to their former agents as winding up charges or commission in whatever form may be for termination of the earlier existing contract, it would not constitute any criminal offence. besides as stated earlier, svenska inc had been representing bofors not only for promoting sales in india but also in ..... and bofors committed forgery by dishonestly indicating in the documents published in 'the hindu' that they had terminated the agencies of all their agents. thus, there was a criminal conspiracy between the bofors and their named and un-named persons.(95) as stated earlier the contract between the government of india and bofors was entered into on 24th march, 1986. as pointed .....Tag this Judgment!
Court : Mumbai
Reported in : 118ITR656(Bom)
..... law to be drawn from those facts.'' 9. after pointing out that there was a difference between a payment made as compensation for termination of an agency contract and an amount paid as solatium for the cancellation of a contract entered into by a businessman in the ordinary course of business, the supreme court went on to indicate what that difference was like and ..... of an agency contract and an amount paid as solatium for the cancellation of a contract entered into by a businessman in the ordinary course of business. in an agency contract the actual business consists in the dealings between the principal and his customers, and the work of ..... his stock-in-trade. in other words, it is not as if that simply because an agency contract is terminated any compensation that might be received for such termination would necessary amount to a capital receipt because, as has been pointed out by the supreme court, an agency contract, which has the character of a capital asset in the hands of one person may assume the ..... on this question the relevant part of the headnote runs as follows : 'there is a difference between a payment made as compensation for the termination .....Tag this Judgment!
Court : Orissa
Reported in : 2007(2)ARBLR37(Orissa); 103(2007)CLT432; 2007(I)OLR256
..... of time, no interim arrangement under section 9 of the act is permissible, that even if for argument sake, it is held that the termination of the agency contract is bad in law or contrary to the terms of the agreement, the loss sustained by respondent no. 1 can be compensated by cost ..... in such a situation, there is no scope to say that loss if any of the 'respondent no. 1 in view of the alleged termination of the contract cannot be quantified or compensated by money. that being so, the alleged injury is not irreparable in nature.10. the mining lease stands in ..... balance of convenience automatically tilts in favour of the appellants.(iii) that, even if it is admitted for the sake of argument that the termination of the agency agreement of the respondent no. 1i by the appellants is contrary to the terms of the agreement, yet the loss suffered by the respondent ..... from 1.4.2006, respondent no. 1 filed an application under section 9 of the act with a prayer to direct the appellant not to terminate the agency agreement and to maintain status quo till adjudication of the dispute by the arbitrators.3. appellants 1, 2, 7 & 8 as opp. parties ..... contract which is terminable on the happening of a particular event, it would be presumed that the contract has come to an end and interim arrangement or injunction would not normally be made after efflux of the period of contract or after happening of the event stipulated.8. the facts and circumstances of the present case prima facie show that the agency .....Tag this Judgment!
Court : Supreme Court of India
Reported in : AIR2006SC2800; 2006(3)ARBLR210(SC); 2006(4)AWC4011(SC); JT2006(7)SC404; 2006(7)SCALE565; (2006)7SCC275; 2006(2)LC1118(SC)
..... -firm, however, filed a suit being suit no. 122 of 2002 for grant of permanent injunction restraining the appellants herein from in any manner blacklisting the respondent-firm or terminating the consignment agency contract. on an application for injunction having been filed, the civil judge, junior division, directed the parties to maintain status quo in regard to the status of the respondent-plaintiff ..... , as would appear from the following averments:14. that the plaintiff have learnt that the defendants without following the basic principles of natural justice are intending to terminate the consignment agency contract of the plaintiff and to blacklist the plaintiff on alleged ground that one of ex-partner of the plaintiff is claimed to be guilty of misrepresentation of overcharging the freight ..... herein qua termination of the contract as also the order of blacklisting. the appellants appeared to have sought for time to file written statement. they also filed a rejoinder to the counter .....Tag this Judgment!
Court : Mumbai
Reported in : 2003(2)ALLMR978; 2003(2)BomCR640; (2003)1CompLJ72(Bom); 44SCL74(Bom)
..... be treated as an agreement independent of the other terms of the contract. the termination of the contract of agency did, not therefore,disentitle the respondent to claim a reference of the disputes between the parties in arbitration. be that as ..... arbitrator shall be appointed by theaforesaid institution. 5. there is no merit in the first submission. in the present case, after disputes between the parties arose and the agency was terminated on 3 april, 1998, the respondent had on 18 january, 1999, made a clear suggestion to the petitioner that if there was no agreement between the parties along ..... it may, the case of the petitioner was that there was no arbitration agreement in existence following the termination of the agreement. that being the position, ..... the agency agreement and that, therefore, there could be no arbitration at all. now the contention that the arbitration clause would not survive following the termination of the agreement was without any basis or substance, since clause (a) of section 16 of the arbitration and conciliation act, 1996, provides that an arbitration clause which forms part of a contract shall .....Tag this Judgment!