The question whether fees received for granting a non-compete covenant is a capital receipt or a revenue receipt depends on a bewildering array of circumstances. While there are a plethora of judgements on the point, the principles are not clear. The author has done a commendable job of carefully analyzing the judgements and systematically identifying their core principles in a concise and clear manner

The Q whether the promise made by the FM & the CBDT in Circular dated 29.05.2012 not to reopen completed assessments despite the retrospective amendments is legal has created a major controversy. The author, in the light of the criticism of his earlier view, objectively reconsiders the entire law on the subject and makes out a compelling argument why his earlier view that the promises are unenforceable is correct

The promise made by the FM in Parliament, which is now endorsed in a CBDT Circular dt 29.05.2012, that completed assessments as of 1.4.2012 will not be reopened pursuant to the retrospective amendments made by the Finance Act 2012, has created a controversy. While one view is that these promises are without authority of law & illegal, the author has taken the converse view after reviewing the entire law on the subject

The author argues that the promise made by the Finance Minister in Parliament, which is now endorsed in a CBDT Circular dated 29.05.2012, that completed assessments as of 1.4.2012 will not be reopened pursuant to the retrospective amendments made by the Finance Act 2012, is without authority of law & illegal. The author makes good his contention by reference to several landmark cases