Keir & Cawder, Ltd. v. C.I.R. (1958), 38 TC 23 (C.S. (1st Div.)) -- summary under Compensation Payments

The taxpayer, whose main activity was carrying on the trade of quarrymasters, sought to extend its business to civil engineering contracting by retaining a firm of consulting engineers to provide the services and reputation of one of their engineers. Insurance proceeds which the taxpayer received on the death of this individual represented compensation for loss of profits which it expected to make through utilizing his services and, accordingly, were taxable receipts.