[aaykarbhavan] Non-compete fee received by assessee from divestment of its insignificant business activity was a revenue receipt

Non-compete fee received by assessee from divestment of its insignificant business activity was a revenue receipt

June 18, 2014[2014] 45 taxmann.com 341 (Mumbai - Trib.)

IT-I : Where assessee engaged in various manufacturing activities, sold only one of its activities to another concern and said activity was not a part of it core activities, non-compete fee received in order to refrain from carrying on said activity for a limited period of five years resulted in revenue receipt liable to tax

IT-II : Where assessee sold one of its manufacturing business as a going concern and there was no sale of itemised assets, this being a case of slump sale, capital gain arising therefrom was not liable to tax

 

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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