HEMALATHA RAMAIAH Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The petitioner has challenged the impugned order dated 29.12.2016 passed by the respondent under Section 143 (3) r/w. Section 147 of the Income Tax Act, 1961. The impugned order was passed pursuant to the notice issued to the petitioner on 31.03.2016, being the last date on which the re-assessment could be made under the proviso to Section 147 of the Income Tax Act, 1961.

(2.) The petitioner had entered into agreement dated 01.04.2006 with Trent Ltd and its affiliates for sale of her shares in Landmark Ltd. In the agreement the non-compete clause reads as under:-

(3.) The petitioner sold 1/25th share in Landmark and its Associates Companies to Trent Ltd and affiliates for Rs.5,76,00,000 in the Assessment year 2006-07 (30.08.2015 & 10.03.2006). On 30.04.2008, the petitioner entered into an another agreement with Trent Ltd and its affiliates for sale of 21% stake in the Land Mark Group Companies. The said agreement contained non-compete clause which reads as under:-