COMMISSIONER OF INCOME TAX Vs. ATUL KUMAR SWAMI

JUDGEMENT

(1.) The revenue is in appeal aggrieved by the order dated 20.9.2013 of the Income Tax Appellate Tribunal (ITAT) whereby the assessee's appeal was allowed.

(2.) The assessee had in respect of assessment year 1999-2000 in the note filed together with the accounts and the returns disclosed that he received a sum of Rs.88 lakhs as one-time non-compete fee. He concededly paid advance tax of Rs.27,60,600/- on the same. He states that this was a one-time capital receipt; the return was processed under section 143(1). The revenue sought to reopen the assessment recording reasons for doing so as follows by its notice dated 09.01.2002:

(3.) The assessee objected to the reopening of the assessment contending that there was no fresh or tangible material discerned by the revenue for notice for reassessment. This objection was overruled and the AO added back the said amount as business income observing that the nature of the consideration receipt having regard to the terms of the agreement was such that it was income and not capital receipt. The assessee preferred an appeal but without success to the Commissioner (Appeals). The Commissioner (Appeals) had during the pendency of the appeal called for remand report and after discussing its contents rejected the appeal.