{"id":2778,"date":"2018-11-01T12:56:34","date_gmt":"2018-11-01T12:56:34","guid":{"rendered":"http:\/\/itatonline.org\/digest\/geojit-investment-services-ltd-v-jcit-2018-172-itd-279-cochin-trib\/"},"modified":"2019-04-21T14:58:02","modified_gmt":"2019-04-21T14:58:02","slug":"geojit-investment-services-ltd-v-jcit-2018-172-itd-279-cochin-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/geojit-investment-services-ltd-v-jcit-2018-172-itd-279-cochin-trib\/","title":{"rendered":"Geojit Investment Services Ltd.  v. JCIT  (2018) 172 ITD 279 \/ 196 TTJ 837\/ 67 ITR 156 (Cochin)  (Trib.)"},"content":{"rendered":"<p>Assessee has shown the compensation of Rs 40 crores received\u00a0from BNP Paribas for discontinuing commodity trading business\u00a0 shown as towards loss of source of income\/profit earning apparatus and therefore\u00a0it was a non-taxable capital receipt.\u00a0AO held that the compensation is taxable as business income. In appeal CIT(A)\u00a0 confirmed the addition and also held that the\u00a0 amount\u00a0 to be taxable under section 28 (ii) (c ) of the Act. Dismissing the appeal of the assesssee the \u00a0Tribunal held that new company GCL was incorporated under same group by common promoters whereby assessee&#8217;s commodity trading was transferred entirely along with its clientele to new floated company GCL and in eyes of clients, business was carried on in same name .Accordingly the\u00a0 profit making apparatus of assessee-company\/group company was not impaired by discontinuance of commodity trade business of assessee per se therefore the\u00a0 amount\u00a0received as compensation could not be termed as a capital receipt. Tribunal also held that\u00a0 going by plain meaning of section 28(va), amount of compensation received for not carrying any activity in relation to any business (i.e. commodity trading business) would be taxable under section 28(va) of the Act. Tribunal also held that <strong>\u00a0<\/strong>when there was no principal and agent relationship between assessee and parent company, compensation received by assessee for discontinuing commodity trading was not from parent company and was not in lieu of surrender of any agency, compensation did not fall within ambit of taxation under section 28(ii)(c).\u00a0\u00a0( AY.2009-10)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 28(iv) : Business income &#8211; Value of any benefit or perquisites &#8211; Converted in to money or not \u2013Non compete fee-Capital or revenue-Compensation of Rs 40 crores  for discontinuing commodity trading business-Commodity trading was transferred entirely to its group concern without there being any impairment to business\/profit making apparatus of assessee-company-Taxable as business \u2013 However when there was no principal and agent relationship between assessee and parent company, compensation received by assessee for discontinuing commodity trading was not from parent company and was not in lieu of surrender of any agency, compensation did not fall within ambit of taxation under section 28(ii)(c) [ S.28(ii)(c )<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-2778","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-IO","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/2778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=2778"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/2778\/revisions"}],"predecessor-version":[{"id":5071,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/2778\/revisions\/5071"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=2778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=2778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=2778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}