TaxTMI 
TaxTMI 
2021 (11) TMI 1220
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....elating to the assessment year 2001-02. 2. By order dated 03.08.2009, this court admitted the aforesaid tax case appeal on the following substantial questions of law: "1. Whether on the facts and in the circumstances of the case the Tribunal is justified in law in holding that the non-compete fee received by the assessee company from the UK company - Royal sun alliance Insurance plc for restraining itself from entering the insurance business was not a capital but a revenue receipt. 2. Whether on the facts and in the circumstances of the case the Tribunal is justified in law in ignoring material evidence and in holding that the receipt was not a non-compete fee but is a revenue receipt for utilization of business advantages of the asse....
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....e point of view of the assessee. What is required to be seen is the interpretation which has to be given to the covenant in the Letter of Intent. The assessee has been non-suited on the ground that they were never in the insurance business and the covenant cannot be considered as a restrictive covenant. We do not agree with the said finding of the assessing officer because there is a background which cannot be ignored by the assessing officer during the relevant point when the "Letter of Intent" was signed. It was the first time, the Government of India took a decision to permit foreign insurance companies to set up general insurance business in India. The entire matter was regulated by the Government of India under the relevant regul....
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.... by the assessee on 23.10.2000 and immediately invested in the shares of the company. To be noted that all the transactions are in the same assessment year, i.e., 2001-2002. 13. In the light of the above, we are of the clear view that the CIT(A) was fully justified in holding that the amount received by the assessee was a capital receipt and was right in deleting the addition made by the assessing officer. Further, we note that the amount has been credited to the capital receipt account in the balance sheet for the year ending 31.03.2001 and the amount does not come anywhere within the inclusive definition of Income as envisaged in Section 2(24). 14. At this juncture, it will be beneficial to refer to the decision of Hon'ble....
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....peal filed by the assessee is allowed and the order passed by the tribunal is set aside and the order passed by the CIT(A) dated 13.01.2005 is restored and the substantial question of law framed is answered in favour of the assessee. No costs." 4. As regards the third question of law, the learned counsel for the appellant fairly submitted that the same has already been considered and decided by this court by order dated 18.01.2019 in TCA No.23 of 2019, wherein, it was held that the assessee would be entitled to depreciation at 60% on UPS and Voltage Stabilizer, the relevant paragraphs of which are usefully reproduced below: "4...with regard to the rate of depreciation that can be claimed for UPS and Routers, the Tribunal in the im....