https://www.taxtmi.com/caselaws?id=752336 The ITAT Delhi held that compensation received under a Non-Competition Agreement upon termination of employment constitutes a capital receipt and is not taxable under Section 17(3)(iii). The assessee received payment from former employer after executing a deed containing non-disclosure, release, and non-compete clauses. Following SC precedent in Guffic Chem and Delhi HC in Mrs. Tara Sinha, the tribunal ruled that compensation for restrictive covenants is capital in nature, not taxable income. Assessee's appeal was allowed. en-us Mon, 06 May 2024 00:00:00 +0530 Wed, 08 May 2024 14:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752336 The ITAT Delhi held that compensation received under a Non-Competition Agreement upon termination of employment constitutes a capital receipt and is not taxable under Section 17(3)(iii). The assessee received payment from former employer after executing a deed containing non-disclosure, release, and non-compete clauses. Following SC precedent in Guffic Chem and Delhi HC in Mrs. Tara Sinha, the tribunal ruled that compensation for restrictive covenants is capital in nature, not taxable income. Assessee's appeal was allowed. Case-Laws Income Tax Mon, 06 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752336