Non-competition fees on account of restrictive covenants is capital receipts: ITAT Delhi

SIEL Limited Vs ACIT (ITAT Delhi) ITAT Delhi held that receipt of non-competition fee on account of restrictive covenants in respect of restrain on the source of income are capital receipts. Accordingly, the same is not liable to tax. Facts- During the course of scrutiny assessment proceedings, the Assessing Officer noticed that the assessee has received non-competition fee from Collaborator amounting to Rs. 64,42,20,000/-. AO formed a strong belief that prior to receipt of non-compete fee, the assessee had already transferred all assets of its compressor limited and, therefore, non-compete fe...