Tribunal held that Revenue should only look at the agreement and not look through the binding agreements entered between the parties in a manner that suits the Revenue. Tribunal held that the transaction was of a capital nature and not taxable since it pertained to the period before AY 2017-18.(AY. 2014-15)
Nalini Mahajan (Mrs.) v. ACIT (2023) 201 ITD 328 (Delhi)(Trib.)
S. 28(va) : Business income-Cash or kind-Under an agreement-Non-compete fees-Capital or revenue-Non-compete fees received for the period prior to AY 20217-18 are to be treated as capital receipts and not to be charged under S. 28(va). [S.4]
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