The Finance Act, 2002 itself indicates that during the relevant ...

Non-competition agreement compensation deemed non-taxable capital receipt before April 1, 2003, under Income Tax Act 1961.

April 8, 2017

Case Laws     Income Tax     HC

The Finance Act, 2002 itself indicates that during the relevant assessment year compensation received by the Assessee under non-competition agreement was a capital receipt, not taxable under the 1961 Act. It became taxable only with effect from 1.4.2003. It is well settled that a liability cannot be created retrospectively - HC

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