Piramal Enterprises Faces Setback: ITAT rules Rs. 92.7 Cr Compensation from termination as ‘Business Income’, Not ‘Capital Gain’ [Read Order]

Compensation received by the assessee from RDG in the out-of-court settlement was business income and not capital gains as claimed by the assessee
Piramal Enterprises Faces - ITAT - Compensation - termination - Business Income - Capital Gain - taxscan

The Mumbai bench of the Income Tax Appellate Tribunal (ITAT ) has concluded that Piramal Enterprises suffered a setback by categorizing the compensation of Rs. 92.7 crore from termination as ‘business income’ instead of ‘capital gain’. During the relevant year, the assessee company received Rs. 92,76,62,688 from Roche Diagnostics Gmbh ( RDG ) of Germany…

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