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| The Tax Publishers2020 TaxPub(DT) 2930 (Mad-HC) INCOME TAX ACT, 1961
Section 28
Where excess price of share received by assessee was treated as non-compete fee by AO and Agreement also stipulates that no non-compete fee would be paid by the purchaser and on account of the fact that assessee selling a large amount of equity shares to a private limited company with a view to get control over the company and that apart, same amount was paid to third party general public also, therefore, appeal filed by Revenue was dismissed.
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Business income - Sale of equity shares through Share Purchase Agreement having non-compete clause - Allowable business income under section 28(va) -
Dy. CIT, in Assessment Order, found that provision of section 28va would be applicable to assessee and the excess amount received by him, over and above the market price was to be treated as business income of assessee and accordingly, done the computation. Held: In the appeal filed by Revenue, Tribunal found that excess price of share received by assessee was treated as non-compete fee by AO and Agreement also stipulates that no non-compete fee would be paid by the purchaser and on account of the fact that assessee selling a large amount of equity shares to M/s. T to get control over the company and that apart, same amount was paid to third party general public also. CIT(A) as well as ITAT had exhaustively dealt with those issues and arrived at a categorical finding deciding those issues/questions in favour of assessee. Therefore, appeal was dismissed.
Relied:ACIT v. P. Subramanian [ITA No.1670/Chny/2017, dt. 28-2-2018]
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2013-14
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