Non-compete fees accrues on the appointed date of the Scheme and not in the year of approval

DCIT Vs. J.K. Investo Trade (India) Ltd. (ITAT Mumbai)- Issue before the Tribunal was that Whether non-compete fees payable pursuant to a joint venture agreement for transfer of manufacturing division, through a Scheme of arrangement, which is sanctioned by the High Court is taxable in the year of Appointed Date or Year of sanction of the Scheme or on receipt?

As per Joint Venture Agreement, effective date of transfer of assets and liabilities of Condom Division of

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