Sai Mirra Innopharm P. Ltd. v. ITO (2021) 87 ITR 235 (Chennai) (Trib.)

S. 28(va) : Business income-Cash or kind-Compensation received for pre closure of contract manufacturing agreement-Capital receipt for loss of business or investment. [S. 4]

Held that  compensation received for termination of a manufacturing agreement is a receipt for loss of investment in business or loss of profit from business and cannot be treated as a revenue receipt liable to be taxed under section 28(va)(a) of the Income-tax Act, 1961.Relied on  CIT v. Parle Soft Drinks (Bangalore P. Ltd.) [2018 406 ITR (St.) 33 (SC). (AY.2007-08)


Leave a Reply

Your email address will not be published. Required fields are marked *