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2011 (12) TMI 387 - AT - Income TaxCapital Receipt - Non compete fee -year of taxability - AO has accepted the fact that the transfer had taken place in the A.Y. 1997-98 and accordingly, the capital gain on the transfer of the said undertaking was brought to tax - Ld. Departmental Representative submitted that assets and liabilities of Condom Division did not take place in assessment year 1997-98 and same had been transferred only after Hon'ble Bombay High Court approved the scheme vide its order dt. 31.7.1997 - Held that: as per Joint Venture Agreement, effective date of transfer of assets and liabilities of Condom Division of assessee to JKAL is 1st July, 1996 and under the said Joint Venture Agreement as per Clause 14.4, assessee company shall cease to continue or initiate any business which is similar or will result in competition with the Condom Business of JKAL - amount of Rs. 1 crore received by assessee as per Non Compete Agreement dt. 4.1.1997 is to be assessed in the assessment year 1997-98 and not in assessment year 1998-99.
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