Compensation for 10-Year Business Inactivity Is Capital Receipt

CIT Vs Saeed Mustafa Shervani (Delhi High Court) Conclusion: Compensation received for non-carrying of business was capital in nature as the operation of non- compete agreement was for 10 years and for the period in which the non-compete agreement was to operate, assessee’s source of income had been clamped. Held: Assessee in his individual capacity filed his Return of Income (ROI). In the ROI, assessee declared his income as Rs.23,24,590/-. An intimation with regard to ROI was served on assessee under Section 143 (1). The record disclosed that assessee was served with a notice for assessmen...