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2016 (7) TMI 575 - GUJARAT HIGH COURTApplacability of provisions of section 28(iv) - non-compete fees receipt - Held that:- The issue is covered by the decision of the Apex Court in the case of Guffic Chem (P.) Ltd. v. Commissioner of Income-tax [2011 (3) TMI 6 - Supreme Court ] wherein held that it is well settled that a liability cannot be created retrospectively. In the present case, compensation received under Non-Competition Agreement became taxable as a capital receipt and not as a revenue receipt by specific legislative mandate vide Section 28(va) and that too with effect from 1.4.2003. Hence, the said section 28(va) is amendatory and not clarificatory - Appellate Tribunal right in holding that provisions of section 28(iv) are not applicable in the case of assessee - Decided in favour of assessee
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