Amount received in lieu of surrender of rights is capital receipt: Telangana HC

CIT-III Hyderabad Vs Satiofi Healthcare India Private Limited (Telangana High Court) Telangana High Court held that the surrender of the rights results in impairment of profit making apparatus of the company and thus amount received under agreement for surrender of rights in capital assets is capital receipt. Accordingly, the appeal by revenue dismissed. Facts- The assessee is engaged in the business of manufacture and sale of Hepatitis-B Vaccine under the trade name “Shanvac-B”. The assessee is equipped with in-house Research and Development team and claims to be the first company in Indi...