2012 (1) TMI 379

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.... Shri Mukul Kr. Shrawat,  This is an appeal at the behest of the Revenue which has emanated from the order of Learned CIT(Appeals)-Valsad dated 12/06/2008. and the solitary substantial ground reads as under:- Relief claimed in Appeal The learned C.I.T. (Appeals) erred in deleting the aggregate additions of Rs. 50,00,000/- made by the AO on account of Non Compete fees treated as rev....

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....the manufacturing of the said product, in lieu, the assessee had received Rs. 50 lacs as lump sum amount. As per AO, it was a revenue receipt, hence taxed accordingly by referring section 28(va) of IT Act. 3. Ld. CIT(A) has discussed several case laws and thereafter noted that at the time when the Ranbaxy Lab Ltd. had decided to take over the product of Gufic Ltd. definitely there was a threat ....

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....al receipt is made taxable. Facts of the said cited decision were identical that during A.Y.1997-98 the said appellant had received Rs. 50 lacs from Ranbaxy Lab Ltd. as non-competition fees in terms of an agreement dated 31/03/1997. The relevant portion is reproduced hereunder:- "The assessee, which was carrying on the business of manufacturing, selling and distribution of pharmaceutical ....