Commissioner of Income-tax v. P.L. Lamba (HUF) - 2015-LL-1203-2

Citation	2015-LL-1203-2
Appellant Name	Commissioner of Income-tax
Respondent Name	P.L. Lamba (HUF)
Court	HIGH COURT OF DELHI AT NEW DELHI
Relevant Act	Income-tax
Date of Order	03/12/2015
Assessment Year	1995-96
Judgment	View Judgment
Keyword Tags	capital receipt
Bot Summary:	This appeal by the Revenue is directed against the impugned order dated 2nd September, 2003 of the Income Tax Appellate Tribunal in ITA No. 4884/Del/2002 for Assessment Year 1995-96. While admitting this appeal on 7th February, 2005, the following question was framed: Whether the sum of Rs. 50 lakhs received by the assessee under the agreement is rightly held as a capital receipt not liable to tax or is it a business income as held by the CIT ITA No. 190/2004 Page 1 of 2 3. It is seen that the decision in Guffic Chem Ltd. v. Commissioner of Income Tax 2011 332 ITR 602 holds that payment received as non- compete fee under a negative covenant would be treated as a capital receipt till AY 2003-04 and it is only by Finance Act, 2002 that the said capital receipt was made taxable. In that view of that matter, the question framed by this Court for AY 1995-96 is answered in favour of the Assessee and against the Revenue by holding that the sum of Rs.50 lakhs received by the Assessee under the agreement in question was rightly held by the ITAT to be a capital receipt not liable to tax.

$ * IN HIGH COURT OF DELHI AT NEW DELHI R-186-A + ITA 190/2004 COMMISSIONER OF INCOME TAX ..... Appellant Through Mr Akash Vajpai and Mr Mohit Madan, Advocates. versus P.L. LAMBA (HUF) ..... Respondent Through Ms Kavita Jha and Ms Mehak Gupta, Advocates. CORAM: JUSTICE S.MURALIDHAR JUSTICE VIBHU BAKHRU ORDER % 03.12.2015 1. This appeal by Revenue is directed against impugned order dated 2nd September, 2003 of Income Tax Appellate Tribunal ( ITAT ) in ITA No. 4884/Del/2002 for Assessment Year ( AY ) 1995-96. 2. While admitting this appeal on 7th February, 2005, following question was framed: Whether sum of Rs. 50 lakhs received by assessee under agreement is rightly held as capital receipt not liable to tax or is it business income as held by CIT (Appeals)? ITA No. 190/2004 Page 1 of 2 3. It is seen that decision in Guffic Chem (P.) Ltd. v. Commissioner of Income Tax [2011] 332 ITR 602 (SC) holds that payment received as non- compete fee under negative covenant would be treated as capital receipt till AY 2003-04 and it is only by Finance Act, 2002 that said capital receipt was made taxable. 4. In that view of that matter, question framed by this Court for AY 1995-96 is answered in favour of Assessee and against Revenue by holding that sum of Rs.50 lakhs received by Assessee under agreement in question was rightly held by ITAT to be capital receipt not liable to tax. 5. appeal is disposed of. S.MURALIDHAR, J VIBHU BAKHRU, J DECEMBER 3, 2015 pkv ITA No. 190/2004 Page 2 of 2 Commissioner of Income-tax v. P.L. Lamba (HUF)

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