JCIT(OSD), RANGE-10, ITO C.R. BUILDING vs. GEM AGROFOODS PVT. LTD., SHANTI NIKETAN

ITA 1227/DEL/2025Status: DisposedITAT Delhi21 August 2026AY 2014-1512 pages
AI SummaryDismissed

What were the facts?

The assessee received an exclusivity fee of Rs. 12,74,15,684/- from a foreign company for refraining from negotiating with other parties for a potential joint venture. The Assessing Officer treated this fee as revenue receipt, while the assessee claimed it as a capital receipt.

What did the Tribunal hold?

The Tribunal held that the exclusivity fee received by the assessee was a capital receipt and not taxable as revenue. The fee was paid for securing exclusivity in negotiations and not for refraining from business activities.

What were the issues?

Whether the exclusivity fee received by the assessee is a revenue or capital receipt, and whether it is taxable under Section 28(iv) or 28(va) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 28(iv),Section 28(va),Section 115JB,Section 14A

AI-generated summary — verify with the full judgment below

आयकर अपीलीय अधिकरण, दिल्ली पीठें, नई दिल्ली INCOME TAX APPELLATE TRIBUNAL, DELHI BENCHES, NEW DELHI BENCH: E BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI M BALAGANESH, ACCOUNTANT MEMBER ITA 1227/DEL/2025 निर्धारण वर्ा/Assessment Year: 2014-15) JCIT(O ), RANGE-10 GEM AGROFOODS PVT. LTD. ROOM NO 405, 4TH FLOOR, C.R. 3/38 (ANNEXE) , SHANTI BUILDING ITO I.P. ESTATE, NEW NIKETAN, NEW DELHI 110021 Vs. DELHI -110002, NEW DELHI- ,DELHI 110002, DELHI NEW DELHI-110002, DELHI अपीलधर्थी Appellant प्रत्यर्थी Respondent

Permanent Account Number of Assessee: AAACG2314E

अपीलधर्थी द्वारा/Appellant represented by: Ms.Lalita Kumari,CIT DR. प्रत्यर्थी द्वारा/Respondent represented by: Ms.Aditi Gupta,Adv. & Sh.Abdulha,Adv.

CO 50/Del/.2026 ( In ITA 1227/DEL/2025) निर्धारण वर्ा/Assessment Year: 2014-15) JCIT(O ), RANGE-10 GEM AGROFOODS PVT. LTD. ROOM NO 405, 4TH FLOOR, C.R. 3/38 (ANNEXE) , SHANTI BUILDING ITO I.P. ESTATE, NEW NIKETAN, NEW DELHI 110021 Vs. DELHI -110002, NEW DELHI- ,DELHI 110002, DELHI NEW DELHI-110002, DELHI अपीलधर्थी Appellant प्रत्यर्थी Respondent

सुनवाई की तारीख / Date of conclusion of hearing: 02-Jul-2026 घोषणा की तारीख / Date of pronouncement: 21st -August-2026

The order continues below.

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