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2016 (3) TMI 29 - HC - Income TaxNon-compete fees - treatment to the receipt - taxation effect - Held that:- The finding of the Tribunal that the amount received by the Appellant was not in the nature of non-compete fees is not perverse as that amount of ₹ 3,80,48,100/claimed as non-compete fees was not a lumsum figure but an odd figure which was claimed to have been arrived after negotiations. In the result, the Appellant was called upon to give details of the components of ₹ 3,80,48,100/claimed as non-compete fees. The Appellant failed to furnish the details. Thus taking into account all the facts, it was fairly concluded that the payment of ₹ 3,80,48,100/claimed as non-compete fees was not in fact so. Further,held that the agreement dated 31st March, 2002 is a subterfuge to colour an amount received in lieu of salary as a non-compete fees so as not to pay tax on the same. In the circumstances, the payment of Rs,3,80,48,100/was held to be not non-compete fees and was brought to tax under the head 'salary' and in particular, under Section 17(3)(ii) of the Act - Decided in favour of the Revenue
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