Greyhound Racing Association (Liverpool) Ltd v Cooper (Inspector of Taxes)           Income Tax – Trading profit – Lump sum – Surrender of lease.
The appellant company having acquired a racing track and equipped it for greyhound racing,
fell into financial difficulties, and the debenture holders appointed a receiver. The latter hired
the track to another company, at first for yearly periods, and then for the period from 1 May
1932 to 29 April 1941. In March 1934, the second company desiring to go into voluntary
liquidation, it became necessary to ascertain its liabilities, and the receiver was approached to
fix a sum for which he would accept a full surrender of the hiring agreement.