https://www.taxtmi.com/caselaws?id=445059 Delhi HC ruled in favor of the assessee regarding the nature of non-compete fee as capital receipt. The court held that the assessee was restrained from competing with WSIL's business for 10 years, effectively clamping their income source. The Tribunal correctly applied the test that there was no material evidence supporting CIT(A)'s conclusion that the non-compete fee was a camouflage for business transfer payments. The compensation received under the non-compete agreement constituted capital receipt, not revenue receipt. en-us Wed, 13 Sep 2023 00:00:00 +0530 Tue, 07 Jan 2025 11:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445059 Delhi HC ruled in favor of the assessee regarding the nature of non-compete fee as capital receipt. The court held that the assessee was restrained from competing with WSIL's business for 10 years, effectively clamping their income source. The Tribunal correctly applied the test that there was no material evidence supporting CIT(A)'s conclusion that the non-compete fee was a camouflage for business transfer payments. The compensation received under the non-compete agreement constituted capital receipt, not revenue receipt. Case-Laws Income Tax Wed, 13 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445059