Case Law Details
Pr. CIT Vs M/s. Monsanto India Ltd. (Bombay High Court)
Tribunal recorded that the Non Compete Agreement was part of the agreement for the sale of the business. Under this Agreement, the Assessee could be seen to have transferred the right to manufacture the product in question. The Tribunal, therefore, was of the opinion that such receipt would not be covered by Section 28(va) of the Act. The Tribunal further held that the Assessee was in the business since the year 1997 and that, therefore, the transfer of the capital asset would give rise to long term capital gain.
In our opinion, the Tribunal was right on both counts. The Non-Compete Agreement was part and parcel of the sale of the business and cannot be seen in isolation. Further, the Assessee was in the business of producing and selling wheat herbicides since the year 1997 and therefore, while selling the business, the Assessee also executed a Non-Compete Agreement, which was part of the sale of assets held by the Assessee in excess of 36 months.
FULL TEXT OF THE HIGH COURT ORDER / JUDGEMENT
The Revenue has filed this Appeal raising following questions for our consideration :
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