CAPITAL AND REVENUE: ILLUSTRATION 11

Mr. B sold a trademark for Rs. 60,000. The amount will be paid in equal instalments of Rs. 1,000 per month. For Mr. B this receipt is a capital receipt because he has completely surrendered a right, whether the amount is received in lumpsum or in instalments does not change its capital nature.

6.ISOLATED TRANSACTIONS

In case of an isolated transaction, the motive behind Dfa Ho the transaction is of immense importance. The motive of the person receiving the amount will decide whether it is a capital or a revenue receipt.