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Which of the following receipt is revenue in nature as per...

This question belongs to Commerce Income Tax And Corporate Tax
Income Tax and Corporate Tax
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Which of the following receipt is revenue in nature as per Income Tax Act?
1. When any contract is entered into in the ordinary course of business, any compensation received for its termination would be a revenue receipt.
2. A receipt under a general insurance policy may be a revenue receipt, if the policy relates to circulation asset.
3. Forfeited security deposits would be revenue receipts, where they are related to the assessee's trading activity.
Select the correct answer using the options given below

Answer & Solution
Correct Answer: Option D
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