Sale of share treated as capital gain since no specific amount assigned towards non-compete fee

Ravi Shroff Vs ACIT (ITAT Mumbai) ITAT Mumbai held that transaction of sale of shares is not business income since assessee was never involved in the business affairs of the company. Further, consideration is treated as capital gain inspite of non-compete fee since no specific amount assigned towards non-compete fee in share purchase agreement. Facts- During assessment, the assessing officer (AO) noted that the assessee has claimed long term capital gain on sale of shares of Hyderabad Chemicals Limited (HCL). AO recorded that out of total sale proceed of Rs. 15.64 Crore on shares of HCL the a...