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TMI Blog2012 (3) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeded to decide the appeal on merits after hearing the ld. DR. 3. The only issue raised in this appeal of the Revenue is against the CIT(A) order in deleting the addition of Rs..6.00 crores made by the Assessing Officer. 4. The assessee is an individual deriving income from salary and other sources. The return of income was filed by the assessee on 31.12.2002 declaring total income of Rs..3,81,120/-. Subsequently, a notice was issued under section 148 and the assessment was completed on 29.12.2009 under section 143(3) r.w.s. 147 of the Act determining the income of the assessee at Rs..6,03,81,120/-. While doing so, the Assessing Officer made addition of Rs..6.00 crores towards non-compete fee received by the assessee treating the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s filed before the CIT(A). 8. In the case on hand, on going through the orders of lower authorities, we noticed that no additional material was filed before the CIT(A) by the assessee which was not filed before the Assessing Officer during the course of assessment proceedings.. The issue before the CIT(A) was whether the non-compete fee received by the assessee is liable to be taxed as revenue receipt or is not exigible to tax as capital receipt and the CIT(A) decided the issue relying on the Hon ble Supreme Court s decision. Therefore, we are not inclined to send this appeal to the file of the Assessing Officer for adjudication. 9. During the course of assessment proceedings, the assessee contended that the non-compete fee is in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r observed as under: 4. The next ground relate to taxing non-compete fees of Rs..6.00 crores as profit in lieu of salary. During appellate proceedings, the AR filed detailed written submissions citing various judgments and also enclosed extracts of various judgments on the issue of taxability of noncompete fees received. 5. The AR also brought to my notice the judgement of the Hon ble Supreme Court in the case of Guffic Chem P. Ltd. vs. CIT (copy of judgement filed) wherein it is held that compensation received for refraining from carrying on competitive business was a capital receipt . In the said judgement the Court also held that such receipt became taxable only w.e.f. 1-4-2003 and it is well settled that a liability cannot be cr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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