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2016 (10) TMI 57 - ITAT CHENNAITPA - Treatment to sale consideration - receipt in the nature of non-compete fee or slump sale - capital gain OR business income - Held that:- On perusal of the terms and provisions of software and business transfer agreements referred by the ld. Assessing Officer in the Draft assessment order and agreement of sale the consideration payable, prime facie is slump sale and such transactions cannot be considered as a non compete fee chargeable to tax. Further, the amendment of Sec. 28(va) of the Act was made to tax the non compete fee received from assessment Year 2003-04. Therefore the provision of non compete fee terminology cannot be accepted and we dismiss the ground of the Revenue and upheld the findings of the ld. DRP in treating as income from Capital Gains. Valuation method - TPA - arms length price - Held that:- the assessee has transferred its business operations in India to Banca Sella S.P.A. having its branch in India. - the business transfer are not covered under Rule 10AB. - TPO directed to eliminate the upward adjustment on Business value transferred to the Associated Enterprise. TPO adjustment on sale of software services business to the Associated Enterprise - Held that:- software services remained in India before the transfer and after transfer and both transfer took place within India and there is no evasion of tax and TPO provision are not applicable. - In respect of TPO adjustments on sale of software services business, the ld. TPO does not have powers to make upward adjustment.
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