Separate non-compete receipt in addition to share transfer taxable as business income – ITAT Mumbai

Ramesh D. Tainwala (ITAT Mumbai)- For proviso(i) to Sec.28(va)(a) to apply there must be transfer of the right to carry on any business. The Assessee in the present case was not carrying on any business on his own but was the promoter and director of the company whose shares were purchased by the Acquirer. Clause-6 of the share purchase agreement dt. 13.3.2006 does not transfer any right to carry on any business but merely provides that the Asssessee shall not carry out any activity in relation to business of the Assessee. We may also add that the provisions of Sec.45 of the Act would get attr...