TaxTMI 
TaxTMI 
TaxTMI 
2018 (9) TMI 475
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....ial questions of law : "i. Whether the Income Tax Appellate Tribunal erred in remanding the matter back to the Commissioner of Income Tax (Appeals) second time as there was no factual dispute between the parties and the Commissioner of Income Tax (Appeals) in its subsequent order had given a conclusive order on the entire factual matrix of the case pursuant to the directions of the Income Tax Appellate Tribunal ? ii. Whether the Income Tax Appellate Tribunal erred in remanding the matter back to the Commissioner of Income Tax (Appeals) when all the material placed before it were present before the Commissioner of Income Tax (Appeal) when he passed the order ? iii. Whether the Income Tax Appellate Tribunal erred in not recording a find....
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....ssing Officer vide letter dated 25.8.2009. Subsequently, a notice under Section 143(2) of the Act dated 18.9.2009 was issued, in response to which, the assessee filed the reply dated 03.10.2009. 4. After verification of the details furnished and going through the return of income, the assessment was completed for the assessed income of Rs. 6,03,51,885/- as against the return of income of Rs. 3,51,885/-. In the assessment order, the Assessing Officer added back the entire amount of Rs. 6 Crores being the amount of non compete fee received by the assessee from the CABL and treated the same as income from business and profession received and accrued during the year under consideration. 5. Aggrieved by the said order, the assessee filed an ap....
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....at, the appellant is before this Court. 7. We have heard Mr.M.V.Swaroop, learned counsel for the appellant and Mr.T.Ravikumar, learned Senior Standing Counsel for the Revenue. 8. The short issue, which falls for consideration, is as to whether the Tribunal could have remanded the matter for the second time to the CIT (A) for a decision as to whether the sum of Rs. 6 Crores received/receivable by the assessee should be treated as a capital receipt or a revenue receipt. 9. in the decision in the case of Cholamandalam MS General Insurance Co. Vs. Assistant/Deputy CIT [reported in (2014) 41 Taxmann.com 29], two of the questions, which fell for consideration, were as to whether the Tribunal exercised its power of remand judiciously and in acc....
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....documents were filed by them at the appellate stage. Therefore, the Tribunal passed an order to remand the matter. When this was placed before the Tribunal, it appears that the authorized representative of the assessee did not raise a serious objection to the remand. The Tribunal, following the decision in the case of the said Mr.M.Ranjan Rao, allowed the appeal filed by the Revenue and remanded the matter to the CIT (A). 11. Thus, it is evidently clear that there is absolutely no fresh material produced by the legal representative of the deceased assessee before the CIT (A) or before the Tribunal. Nevertheless, on remand, the matter was taken up for consideration by the CIT (A). Thus, the scope of remand order passed by the Tribunal was e....
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.... upon the said subject further because the assessee accepted the order and participated in the de novo proceedings before the CIT (A). The next issue, which was taken up for consideration by the CIT (A) was with regard to the distinction between the non compete fee and the good will. The CIT (A) held that the addition of Rs. 6 Crores should be deleted. 14. Further, it is relevant to point out that out of Rs. 6 Crores, the assessee received only Rs. 1 Crore and by the time the remaining payment was made, the company namely the CABL became defunct for having incurred huge losses during the financial years 2003-04 and 2004-05 with negative net worth of Rs. 68.49 Crores. When the Revenue carried the matter by way of appeal challenging the orde....
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....of marketing/promoting ethical allopathic branded pharmaceutical formulations in the Union of India and the Kingdom of Nepal. The covenanter namely the assessee acknowledged that if he was not restricted from competing with the CABL, the CABL would potentially suffer considerable economic prejudice including the loss of custom and goodwill. Accordingly, it was decided that to protect the interests of the CABL, the covenanter namely the assessee agreed to a restraint of trade undertaking in favour of the CABL to ensure that he was precluded from carrying on certain activities, which would be harmful to the business of the CABL. The said agreement further states that in consideration for the restraint undertakings given by the covenanter, the....