Case Law Details
Shiv Raj Gupta Vs CIT (Supreme Court)
The Apex Court in the case of Shiv Raj Gupta v. CIT1 held that the compensation attributable to a negative/restrictive covenant is a capital receipt. The Apex Court reiterated that the test of commercial expediency would have to be adjudged from the point of view of the businessman and not of the Income Tax Department.
The Apex Court further held that the High Court’s jurisdiction depends on a substantial question of law being involved in the appeal before it. The High Court cannot answer any question not farmed before it. It must record reasons and give proper and adequate opportunity of hearing to the parties before deciding any other question of law.
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