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2012 (8) TMI 526 - HC - Income TaxValidity of reopening of assessment subsequent to intimation received u/s 143(1)(a) - AY 94-95 - Held that:- Intimation u/s 143(1)(a) could not be treated as an order u/s 143(2) and there was no change of opinion in initiating proceedings u/s 147 r.w.s. 143(2). See CIT Vs Ideal Garden Complex P.Ltd (2011 (9) TMI 731 - MADRAS HIGH COURT) - Decided against assessee. Amount received under restrictive covenant - Revenue receipt vs Capital receipt - Held that:- It is observed that agreement of sale between the purchaser company and seller company, in which the assessee was the Director dated back to 1.4.93. Assessee was offered employment vide letter dated 8.10.93, to which assessee submitted acceptance vide letter dated 19.10.93 indicating the acceptance to join the services effective from 1.11.1993 and non-compete agreement was entered into on 15.10.93. Thus, non compete agreement and the employment agreement formed part of the same transactions. Going by the fact that the assessee was offered employment as early as 8.10.93, the restrictive covenant entered into on 15.10.1993 would not be called as independent agreement. Therefore, any amount received under the so called non compete agreement, would only be treated as salary for the purpose of assessment and thus revenue in nature - Decided against assessee.
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