2018 (6) TMI 1548

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.... Sanjoy Bhowmick and A.K. Dey JUDGMENT 1. The legal question raised by the Revenue in this appeal is as to whether the payment received by the assessee for exercising its voting rights in a company in a particular manner would be a capital receipt or a revenue receipt. The Commissioner (Appeals) disagreed with the submissions of the assessee that the income had to be treated as a capital rec....

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....Indian promoter thereof and entered into an agreement with the controlling shareholders such that in lieu of a specified consideration, the controlling shareholders would relinquish their right to use the brand and vote accordingly at a general meeting of the company. The Bombay High Court reasoned that such income was not the usual income from business and was a one-off or accidental income relat....

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....ght the assistance of the assessee in this case to ensure that RPG Raychem Limited did not continue rival business in the same industrial products in India. Accordingly, an agreement was entered into by the relevant subsidiaries of Tyco, USA under which the assessee was to vote in a particular manner at a general meeting of RPG Raychem Limited such that Tyco's specialised business was no longe....

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....ing its voting rights in a particular manner was a consequence of the investment of the assessee in RPG Raychem Limited. Even by such logic, the income could have been regarded as a capital receipt, 6. The Appellate Tribunal's treatment of the matter, particularly, in the light of the judgment of the Bombay High Court, does not call for any reconsideration. The Tribunal appropriately held t....