Amount received as a Restrictive Covenant is a Capital Receipt but taxable w.e.f. 1.4.2003

Brief of the Case In the present facts of the Case there were two vital issues contended by the Revenue which were dismissed by the Hon’ble High Court by observing that the amount received as restrictive covenant is a capital receipt and is taxable only as a revenue receipt w.e.f. 1/4/2003. Regarding second issue the Hon’ble High Court held that the book profits declared under P/L account cannot be disturbed. Facts of the Case There was an agreement between an assessee and a company due to which Assessee was prohibited from utilizing its business know-how for 5 years. The AO was of the vie...