Non-Competition Fee received under Restrictive Covenants Restrains Source of Income: ITAT deletes Addition of Rs. 64 Cr [Read Order]

The non-competition agreement is a capital receipt, not taxable.
Non-Competition Fee received - Restrictive Covenants Restrains Source - Income - ITAT - TAXSCAN

The Delhi bench of the Income Tax Appellate Tribunal ( ITAT ) has ruled to delete the addition of Rs. 64 crore after determining that the non-competition fee received under restrictive covenants restrained the source of income. The assessee filed a detailed reply explaining that this non-compete fee has been received under agreement for restrictive…

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