TaxTMI 
TaxTMI 
2015 (4) TMI 516
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....ermo was taxable as business income under the provisions of section 28(va) of the Act, despite the fact that the Appellant was not carrying on any business in the relevant previous year ? II. Whether the Appellate Tribunal is correct in holding that carrying on of business is not a pre-condition was chargeability under the head 'profits and gains of business' ? III. Whether on the facts and in the circumstances of the case and in law, the ITAT erred in failing to appreciate that the amount received by the Appellant does not fall within S.28(va) and amounts, at best, to a transfer of a right to manufacture or a right to carry a business, taxable under the head capital gains ? 2. The issues involved in both appeals are identical an....
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....for profit or otherwise, involving the production, development, manufacture, sale or distribution of products that are the same as or similar to the products produced developed, manufactured, marketed, sold or distributed by the Acquired Business as of date hereof and / or during the period of two (2) years prior to the Completion Date; and ii) assist third parties, whether as a consultant, partner, administrator, advisor or otherwise in carrying out the activities of the Acquired Business as of the date hereof: " 4. The assessee also agreed that for a period of four years from the appointed date, the assessee shall not without prior consent of Thermo, directly or indirectly engage in any business of the division sold to Thermo for a peri....
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.... that Deplete the Ozone layer under the United Nations Environment Programme, in accordance with the terms of agreement entered into with the Government of India." 5. Being aggrieved by the order of the Commissioner of Income Tax (Appeals), the assessee filed appeals before the Appellate Tribunal, which while dismissing the appeals vide order dated 16th January, 2013, held that carrying on business is a sine qua non and taxable Section 28(i) of the Act. The Tribunal was of the view that it is not necessary to carry on the business in order to attract the provisions of Section 28(va) of the Act. 6. Mr.Pardiwalla, learned Senior Advocate appearing on behalf of the appellant contended that the amount received by the appellant could not be te....
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....hich he was the owner and some land related transaction was entered into with M/s. Goa International School (P) Ltd. Accordingly, the amount of Rs. 25 lacs was paid to the assessee by Goa International School (P) Ltd. since he would be deprived of his business and relatable income. 8. The Assessing Officer applied Section 28(va)(a) of the Act since the amount was chargeable to tax and submitted that under section 28(va)(a), the Assessing Officer was justified in holding that the capital receipt was received as compensation and was not capital receipts which is provided under Section 45(1) of the Act. Relying upon the aforesaid decision, Mr.Pardiwalla submitted that amount of Rs. 5 crores and Rs. 2 crores respectively amounted to capital re....
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....hat case, the Hon'ble Supreme Court was dealing with the judgment of the Karnataka High Court wherein the High Court held that the compensation received under the noncompete agreement can be treated as a capital receipt. The Hon'ble Supreme Court then went on to determine whether the payment under an agreement not to compete is a capital receipt or a revenue receipt. Two questions arose for determination in that case, firstly, whether the amounts received for loss of agency was in normal course of business and, therefore, it constituted revenue receipts and secondly whether the amount received as compensation on the condition not to carry on a competitive business was in the nature of capital receipt. It was held that the payment of....