In CIT, Bengal v Shaw Wallace & Co (1932) the definition of income is as follows: .income connotes a periodical monetary return coming in with some sort of regularity, expected regularity, from defined sources. Corporate income is an income that is derived from its ordinary running of business. It is not a gain from disposal of capital or the increase in value of investment but a gain that will increase profit.

Required:

(a) Explain FOUR (4) types of gross income from business. (explain the details) (12 marks)

- RECOVERY OF TRADING DEBTS WRITTEN OFF AS BAD :

- INSURANCE RECOVERY FOR LOSS OF PROFIT :

- RECEIPTS IN CASH FOR GOODS SOLD OR SERVICES RENDERED :

- RECEIPT IN KIND :

(b) Discuss FOUR (4) capital gain according to Income Tax Act 1967. (explain the details) (12 marks)

- SPECIAL CLASS OF INCOME :

- INTEREST :

- ROYALTY :

- CONTRACT PAYMENT :