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Issues involved: Claim for exemption u/s Section 28(i) of the Income Tax Act for income received from settlement of dispute among family members regarding business name usage.
Summary: The assessee, who was carrying on business under the name of M/s. Madhuban Restaurant, received a payment of Rs. 22 lakhs for agreeing not to use the name Madhuban Restaurant in a new business venture. The Tribunal rejected the assessee's claim for exemption, stating that the income received was not for stopping the restaurant business but for agreeing not to use the specific name. The Tribunal found that the assessee continued his business under a different name, leading to the conclusion that the income falls under Section 28(i) of the Income Tax Act as business income. As there was no restriction on the assessee to continue the business, only against using the name Madhuban Restaurant, the Tribunal's decision was upheld, and the appeal was dismissed.
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