1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Liability cannot be created retrospectively-Non compete fee

ByCA Gopal Nathani

Sep 8, 2022

Non compete fee is made taxable as trading receipt vide Finance Act 2003. The AO however imposed tax on such fee in AY 2001-02 in the case of [2022] 20 ITR-OL 274 (Bom).

Holding it as a capital receipt the Court held that liability cannot be created retrospectively. The SC in 425ITR420 has also held it as non taxable on this very ground.