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2011 (7) TMI 62 - HC - Income TaxCapital or revenue receipt - Non compete fees - it is clear that with the entering of the agreement, the assessee was no longer at liberty to engage itself in commercial activity either directly or otherwise, to manufacture and sell or distribute mosquito repellent, mats or mat heater machines under its trade name either on its own behalf or on behalf of anyone - it is clear from the agreement with TDP Limited that the restrictive covenant therein practically prohibited the assessee in the matter of enjoying that source of income by exploiting the trademark owned by it - It is well established that the compensation received for the mere loss of profits will be a revenue receipt, while the compensation received for the loss of a source of income would be capital receipt - Decided in favour of the assessee
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