Bona fide disclosure requirements govern under-reporting penalties, and post-penalty immunity applications cannot secure available statutory protectio...
Certificate-of-origin verification procedure governs preferential customs benefits; denial without retroactive verification was set aside with consequ...
Disciplinary Committee jurisdiction and mandatory investigation requirements invalidated cancellation of an insolvency professional's registration and...
Retention of seized property survives where recorded reasons support proceeds of crime, while stayed investigation periods are excluded from limitatio...
Exclusivity fee received in cash for an aborted joint venture involving transfer of subsidiary shares is a capital receipt where the agreement merely restricts negotiations with other prospective buyers and does not restrict business activities. The monetary receipt falls outside the then-applicable scope of business benefits, and the non-compete provision does not apply because no business activity was restrained. The fee is therefore not taxable under normal provisions or while computing book profit, and its credit to capital reserve stands. Expenditure disallowance relating to exempt income cannot apply where no exempt income was earned; the later explanatory amendment operates prospectively from AY 2022-23.
Exclusivity fee received in cash for an aborted joint venture involving transfer of subsidiary shares is a capital receipt where the agreement merely restricts negotiations with other prospective buyers and does not restrict business activities. The monetary receipt falls outside the then-applicable scope of business benefits, and the non-compete provision does not apply because no business activity was restrained. The fee is therefore not taxable under normal provisions or while computing book profit, and its credit to capital reserve stands. Expenditure disallowance relating to exempt income cannot apply where no exempt income was earned; the later explanatory amendment operates prospectively from AY 2022-23.
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