Non compete fees taxable as business income not as Salary Income

 Now coming to the issue in question about the head of taxability, the provisions of Section 28(va) have been narrated above. Except from raising general argument about colourable device, lower authorities have not disputed the arguments of the assessee about applicability of Section 28(va), CIT(A) has considered the argument of the assessee and at the end held that this is a colourble device and the income is assessable under the head as salary income without commenting on inherent merits and scope of Section 28(Va). In our view, provisions of Section 28(va) are applicable to assesee’s cas...