Nature of receipt - amount received under the Deed for ...

Court to Decide if Deed Payment for Restrictive Covenant is Revenue or Capital Receipt; Misunderstanding of Company Establishment Date Noted.

February 21, 2022

Case Laws Income Tax HC

Nature of receipt - amount received under the Deed for restrictive covenant - revenue or capital receipt - ITAT, CIT and the AO have proceeded on an erroneous footing that the company came into existence only on 22nd June, 2000 and the assessee was inducted into its employment on 30th June, 2000 and therefore it was not feasible and it is inconceivable that appellant can be a privy to the business secrets of the company within a period of eight days of his employment. The deed of negative covenant does not provide or even indicate that appellant was privy to the business secrets of the company within a period of eight days - No material has been brought on record to show that the negative covenant agreement is a sham agreement. - HC

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Nature of receipt - amount received under the Deed for ...

Court to Decide if Deed Payment for Restrictive Covenant is Revenue or Capital Receipt; Misunderstanding of Company Establishment Date Noted.

February 21, 2022

Case Laws Income Tax HC

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