Supreme Court · 2011 INSC 209 · Decided 16 March 2011
Guffic Chem P. LTD. ETC. v. C.L.T., Belgaum & ANR.
- Court
- Supreme Court of India
- Citation
- 2011 INSC 209 · [2011] 3 S.C.R. 899
- Case number
- CIVIL APPEAL No. 2522/2011
- Decided
- 16 March 2011
- Bench
- S.H. KAPADIA, K.S. RADHAKRISHNAN, SWATANTER KUMAR (3-judge bench)
- Outcome
- Appeal(s) allowed
- Case type
- Civil
- Acts & sections cited
- Income Tax Act
Headnote
INCOME TAX ACT, 1961: A B C~pital receipt -Assessment year 1997-98 -Payment C received under an agreement not to compete (negative covenant) -Held: Compensation attributable to a negative! restrictive covenant during the relevant assessment year was a capital receipt not -It became taxable only w. e.f. 1. 4. 2003 -A liability cannot be created D restrospectively-s.28 (va) is a mandatory and not clarificatory. During theassessment year 1997-1998, the assessee received Rs. 50 lakhs as non-competition fee in E consideration of an agreement that contained
Judgments are the courts' own published copies, provided for study; they are not certified copies. Source: Indian Supreme Court & High Court Judgments, Dattam Labs (CC-BY-4.0)