Taxability of receipts from transfer of marketing rights and non-compete fee

RELEVANT PARAGRAPH 9. The first item of receipt is that of Rs.5.010 crores towards assignment of marketing rights for local as well as export business. The Assessing Officer held it to be a revenue receipt liable to tax. At this juncture, it will be relevant to consider the distinction between the revenue and capital receipt in the context of the nature of transaction we are concerned with. Albeit there is no conclusive test for drawing a line of demarcation between the capital and revenue receipts, yet certain general principles have been laid down by the Hon’ble Courts which work as gu...