2014 (12) TMI 107

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....ue and another by the Assessee. 2. The Revenue is aggrieved by that part of the Tribunal's order where it held that the Commissioner and the Assessing Officer could not have computed the sums under the component noncompete relying on the clause in the agreement. The Tribunal held that the amounts could not have been computed in the manner, which has been done by these authorities. 3. The return of income was filed and certain amount was declared as business income source. A substantial part was declared as Long Term Capital Gain. The Long Term Capital Gain, and which was the real matter for examination, indicated that there was a Private Limited Company and which was incorporated by Mandhana family on 10 September 1988. Subsequent....

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....d the reasoning in the Coordinate Bench decisions. 5. Mr.Malhotra, appearing on behalf of the Revenue, submits that the Tribunal's findings and that of its Coordinate Bench, as indicated above, would raise the substantial question of law. Therefore, the Appeal be admitted. 6. We have, with the assistance of Mr.Malhotra, carefully perused the order passed by the Tribunal and relevant to this issue. We find that the Tribunal has appreciated the matter in the factual background and essentially. It is to support its reasoning on facts that it referred to its Coordinate Bench decisions. The Assessing Officer had bifurcated the amount, which was determined as the sale price per share. Thus Rs. 570/- per share received by the Assessee wa....

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....e extent of that held by the German company came in the hands of this Dutch company. In the relevant previous year, the Dutch company acquired the remaining shareholdings of Mandhana family. That is how, it determined the composite or lump-sum price of Rs. 570 per share. To enable it to pay the same and also to ensure that there is no business activities, competing with Mandhana Boremann, the agreement provided that the Assessee shall not carry on or be interested in, any business which competes with the business of Mandhana Boremann. It is this arrangement, which has been, relied upon by the Tribunal to conclude that this group of persons collectively, which were prevented from doing any competing business. It is in such circumstances and ....