https://www.taxtmi.com/caselaws?id=755415 The ITAT Mumbai held that non-compete fees received by the assessee constituted capital receipts rather than revenue receipts for the assessment year in question. The tribunal determined that section 28(va) amendment, which treats non-compete fees as revenue receipts, was not applicable to the year under consideration as it became effective from April 1, 2003. The legislative amendment was intended to clarify the treatment of non-compete fees as revenue receipts but only applied prospectively from A.Y. 2004-05. The CIT(A)'s order treating the non-compete fee as capital receipt was upheld, and the Revenue's appeal was dismissed. en-us Mon, 27 May 2024 00:00:00 +0530 Fri, 12 Jul 2024 08:36:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755415 The ITAT Mumbai held that non-compete fees received by the assessee constituted capital receipts rather than revenue receipts for the assessment year in question. The tribunal determined that section 28(va) amendment, which treats non-compete fees as revenue receipts, was not applicable to the year under consideration as it became effective from April 1, 2003. The legislative amendment was intended to clarify the treatment of non-compete fees as revenue receipts but only applied prospectively from A.Y. 2004-05. The CIT(A)'s order treating the non-compete fee as capital receipt was upheld, and the Revenue's appeal was dismissed. Case-Laws Income Tax Mon, 27 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755415