2018 (9) TMI 715

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....attacharyya, Adv. For The Respondent : Mr. R. N. Bajoria, Sr. Adv., Mr. Akhilesh Gupta, Adv., Mr. Asim Choudhury, Adv. And Mr. Rohan Poddar, Adv. ORDER The Court : No question of law of any significance is raised by the Revenue, particularly, in the context of the show-cause notice issued by it and the specific reasons given in the show-cause notice for the issuance thereof. The assessee in t....

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....on 28(v-a) of the Act. Extracts from the show-cause notice of November 14, 2012 are quoted in the Appellate Tribunal's order of March 16, 2016 assailed by the Revenue herein. Paragraphs 5 and 6 of such show-cause notice, which indicated the reasons for the notice, are of some relevance: "5. The aforementioned amount of Non-Compete Premium is chargeable to tax under the head 'income from Capital....

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....n from the judgement of the Hon'ble Supreme Court of India in the case of Gufic Chem P. Ltd. reported in 332 ITR 602 [2011], wherein the Apex Court has held that payments received as noncompetition fee under a negative covenant is in the nature of capital receipts. "6. The above mentioned amount of Rs. 6,05,25,000/- is therefore taxable under the head capital gains inasmuch as the cost of acqui....

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....tinction in the Supreme Court judgment as to the manner of treatment of any non-compete premium on the basis of whether such premium was received prior to Section 28 of the Act being amended to incorporate sub-section (v-a) therein. It is now sought to be suggested on behalf of the Revenue that in view of the proviso to Section 28(v-a) of the Act the non-compete premium in this case ought to have....