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2011 (7) TMI 43 - HC - Income TaxNon-competition fee - Revenue or Capital receipt - As per the decision of the Supreme Court in the case of Guffic Chem. Pvt. Ltd. vs. Commissioner of Income-tax (2011 -TMI - 202401 - Supreme Court),find that the point involved herein is squarely covered by the said decision as the case relates prior to April 1, 2003 and consequently, the payment should be treated to be capital receipt and not taxable - Decided in favour of assessee. Genuineness of the non-competition fees - Hence, the genuineness of a transaction being essentially a question of fact and no such allegation about the genuineness having been levelled against the assessee by the Assessing Officer, such question even cannot be lawfully raised for the first time before the Tribunal, the second appellate forum and that too, without giving opportunity to the assessee to prove the genuineness of the transaction - Find that the Tribunal below committed a substantial error of law in disbelieving the transaction as a sham transaction which is totally a new case not even borne out by the records.
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