Compensation for Negative Covenant Not Taxable u/s 28(va) of Income Tax Act; Considered Capital Receipt.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Profits in lieu of salary - chargeable to tax u/s 17(3) or section 28(va) - appellant was not an employee - compensation attributable to a negative/restrictive covenant is a capital receipt. - as the sum received by the appellant does not fall within the ambit of section 28(va), and being a capital receipt is not taxable - AT....