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2012 (7) TMI 48 - HC - Income TaxNon-compete fees - whether the same can be presumed to include element of goodwill, when no other consideration is specified in the main agreement for the goodwill - assessee, a private company entered into an agreement with M/s R for transfer of its business as a going concern and also entered into another non-compete agreement - AY 01-02 - Held that:- Tribunal was right in holding that the amount received for intangible assets under a separate agreement, is only a non-compete fee, and does not contain any element of goodwill, especially when there is no other consideration specified in the main agreement for the goodwill and there is no evidence to show that the amount received was towards transfer of Goodwill. Therefore, payment received as non-competition fee under a negative covenant is a capital receipt and not taxable under the Act. The same was always treated as a capital receipt till AY 2003-2004 - Substantial question of law is answered against the Revenue
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