ARUN TOSHNIWAL Vs. DY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The above two appeals propose the following questions which are termed as substantial questions of law :-

(2.) The issues involved in both appeals are identical and arise out of non compete and non solicitation agreements entered into between the assessees and one Thermo Electron India LLS Pvt. Ltd.

(3.) A few facts may be narrated before dealing with the issues in the present appealsThe assessee in both the appeals were directors of one Chemito Technologies Pvt. Ltd. ('Chemito'). On or about 27th May, 2008, Chemito sold one of its divisions to a company Thermo Electron LLS India Pvt. Ltd. ('Thermo'). Vide an agreement dated 2 nd June, 2008, the said Thermo entered into agreements of non compete and non solicitation under the which the assessees agreed and undertook not to engage in any business directly or indirectly or otherwise be involved in activity which was similar to that of the division sold to Thermo. For easy reference, we reproduce clause (1) of the said agreement between the Appellant in Appeal No.1257 of 2013 and Thermo :-