https://www.taxtmi.com/caselaws?id=757097 Compensation received under a non-compete or other negative covenant is treated as a capital receipt and is not taxable unless specifically brought within the charging provisions. Surplus arising on cancellation of debentures issued for capital purposes is capital in nature, while premium payable on redemption of debentures is allowable as part of the financing cost. By contrast, expenditure incurred to secure a going concern or investment opportunity is capital expenditure and not deductible as revenue outlay. In capital gains computation, accepted cost figures may be indexed, and where transfer occurs under amalgamation, cost must be traced to the previous owner with adequate supporting particulars. en-us Wed, 31 Jan 2024 00:00:00 +0530 Wed, 14 Aug 2024 12:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=757097 Compensation received under a non-compete or other negative covenant is treated as a capital receipt and is not taxable unless specifically brought within the charging provisions. Surplus arising on cancellation of debentures issued for capital purposes is capital in nature, while premium payable on redemption of debentures is allowable as part of the financing cost. By contrast, expenditure incurred to secure a going concern or investment opportunity is capital expenditure and not deductible as revenue outlay. In capital gains computation, accepted cost figures may be indexed, and where transfer occurs under amalgamation, cost must be traced to the previous owner with adequate supporting particulars. Case-Laws Income Tax Wed, 31 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=757097