INCOME TAX ACT, 1961

Section 28(va)

Business income - Chargeability - Non-compete fees -

Issue under consideration was whether Tribunal was justified in holding that receipt in the form of non-compete fees was capital in nature and not chargeable to tax. Held: Issue was squarely covered in favour of assessee by judgment of High Court of Gujarat in the assessee's own case, wherein it was held that non-compete fees received for refraining from carrying on business was capital receipt and non-compete fees received prior to 1-4-2003 was not taxable under section 28(va).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2002-03

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