Section 28(va) of the Income Tax Act

Income-tax Act, 2025: s.26

Section 28(va) falls under section 28 of the Income-tax Act, 1961, which corresponds to section 26 (Income under head “Profits and gains of business or profession") of the Income-tax Act, 2025.

Read section 26 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 28(va) is Ltd. v. CIT (79 ITR 589), cited in 37 of the 101 judgments on BharatTax that turn on this section.

Leading authorities on Section 28(va)

Ltd. v. CIT
79 ITR 589 · 1971 · Supreme Court
37
citing judgments

This case is authority for the principle that deductions under section 36(1)(viii) of the Income-tax Act may be granted in respect of certain categories of receipts. The court's decision in this case is relied upon when interpreting the scope of business activities for tax purposes.

Asianet Communications v. CIT
96 Taxmann.com 399 · 2018 · High Court
34
citing judgments

A non-compete fee paid as part of an agreement to prevent competition or induce employees to stay is to be treated as a revenue expenditure.

CIT v. Areva T & D India Ltd.
129 Taxmann.com 55 · 2021 · High Court
13
citing judgments

Expenditure incurred for acquiring a non-compete right is capital in nature and eligible for depreciation under section 32(1)(ii) of the Income Tax Act as it constitutes an intangible asset.

53 ITR 261 (SC) 3 Gillanders Arbuthnot & Co. (P) Ltd. v. CIT
239 ITR 471 · 1999 · High Court
7
citing judgments
CIT v. Jayanand Khira & Co. (P.) Ltd.
170 ITR 31 · Reported
6
citing judgments
Areva T & D India Ltd. v. Dy. CIT
208 Taxmann 252 · 2012 · Reported
6
citing judgments
CIT v. Scindia Steam Naviagation Co. Ltd.
125 ITR 118 · High Court
4
citing judgments
Madras HC and Orchid Chemicals & Pharmaceuticals Ltd. v. Assistant Commissioner of Income
131 ITD 385 · ITAT
4
citing judgments
Sharp Business System v. DCIT
15 Taxmann.com 144 · 2011 · High Court
3
citing judgments

Judgments on Section 28(va)

Commissioner of Income Tax-I Jalandhar vs. M/S Max India Limited

Appeals are hereby dismissed

ITA/187/2013HC Punjab & Haryana23 Jan 2019
Section 115JSection 143(1)Section 143(2)Section 14ASection 260ASection 73

Sh. Hulas Rahul Gupta, New Delhi vs. DCIT, New Delhi

The appeal of the assessee is allowed

ITA 5785/DEL/2015[2007-08]Status: DisposedITAT Delhi09 Jan 2019AY 2007-08

Bench: Shri Bhavnesh Saini & Shri Prashant Maharishish. Hulas Rahul Gupta, Vs. Dcit, Legal Heir Of Shri Bhushan Circle-11(1), Kumar Gupta, C-12, Friends New Delhi Colony (East), New Delhi Pan: Aaapg3671R (Appellant) (Respondent)

For Appellant: Shri Salil Agarwal, AdvFor Respondent: Md. Gayasuddin Ansari, Sr. DR
Section 143(3)Section 147Section 148Section 260ASection 28

Amit Rastogi HUF, Meerut vs. ITO, Ward- 1(1), Meerut

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 2128/DEL/2018[2015-16]Status: DisposedITAT Delhi24 Oct 2018AY 2015-16

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: S/Shri K. Sampath & V. Raj KumarFor Respondent: Ms. Ashona Neb, Sr.D.R
Section 143(3)Section 40ASection 40A(2)

M/S. Shankar Trading Co. (P) Ltd., New Delhi vs. DCIT, New Delhi

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 5126/DEL/2014[1992-93]Status: DisposedITAT Delhi24 Oct 2018AY 1992-93

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: S/Shri K. Sampath & V. Raj KumarFor Respondent: Ms. Ashona Neb, Sr.D.R
Section 143(3)Section 40ASection 40A(2)

M/S. Shankar Trading Co. Ltd., New Delhi vs. DCIT, New Delhi

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 2245/DEL/2014[2010-11]Status: DisposedITAT Delhi24 Oct 2018AY 2010-11

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: S/Shri K. Sampath & V. Raj KumarFor Respondent: Ms. Ashona Neb, Sr.D.R
Section 143(3)Section 40ASection 40A(2)

M/S. Shankar Trading Co. Ltd., New Delhi vs. DCIT, New Delhi

In the result, all the appeals of the assessee are partly allowed for statistical purposes

ITA 2244/DEL/2014[2009-10]Status: DisposedITAT Delhi24 Oct 2018AY 2009-10

Bench: Shri Amit Shukla & Shri O.P. Kant

For Appellant: S/Shri K. Sampath & V. Raj KumarFor Respondent: Ms. Ashona Neb, Sr.D.R
Section 143(3)Section 40ASection 40A(2)

Bhojison Infreastructure Pvt. Ltd., Ahmedabad vs. The Income Tax Officer, Ward-1(1)(2), Ahmedabad

In the result, appeal of the assessee is allowed

ITA 2449/AHD/2016[2008-09]Status: DisposedITAT Ahmedabad17 Sept 2018AY 2008-09

Bench: Shri Pradip Kumar Kedia & Shri Mahavir Prasad, Judicial Memebr आयकर अपील सं./I.T.A. No. 2449/Ahd/2016 ("नधा"रण वष" / Assessment Year : 2008-09)

For Appellant: Shri Dhiren Shah, A.R
Section 6

Siddharth Deepak Dandekar, Mumbai vs. ITO 21(3)(3), Mumbai

In the result, appeal filed by the assessee for the assessment year 2012-2013

ITA 5040/MUM/2016[2012-13]Status: DisposedITAT Mumbai27 Jun 2018AY 2012-13

Bench: Shri C.N. Prasad () & Shri N.K. Pradhan () Assessment Year: 2012-13 Deepak Madhav Dandekar Asst. Commissioner Of Income (Huf) B-4, Asavari, 241, Tax -21(1), Piramal Chamber, Vs. Veer Savarkar Road, Lalbaug, Parel Mahim, Mumbai-400016. Mumbai. Pan No. Aaahd1746G (Appellant) (Respondent) Assessment Year: 2012-13 Siddharth Deepak Income Tax Officer-21(3)(3), Dandekar B-4, Asavari, Piramal Chamber, Lalbaug, Vs. 241, Veer Savarkar Road, Parel Mahim, Mumbai-400016. Mumbai. Pan No. Agdpd4532F (Appellant) (Respondent) Assessee By : Mr. Rajesh S. Athavale, Ar Revenue By : Mr. V. Vidhydhar, Dr Date Of Hearing : 02/04/2018 Date Of Pronouncement: 27/06/2018

For Appellant: Mr. Rajesh S. Athavale, ARFor Respondent: Mr. V. Vidhydhar, DR
Section 143(3)

ACIT 1(3)(1), Mumbai vs. Sumitomo Chemical (I) P.Ltd, Mumbai

In the result, the appeal filed by the revenue is dismissed

ITA 578/MUM/2017[2010-11]Status: DisposedITAT Mumbai25 Jun 2018AY 2010-11

Bench: Sri Rajendra, Am & Sri Pawan Singh, Jm Aayakr Apila Sam./ Ita No.578/Mum/2017 (Inaqa-Arna Baya- / Assessment Year 2010-11)

For Appellant: Shri Paras S. Savla ARFor Respondent: Shri Aaraj Garodia, DR
Section 143(3)

ACIT Non Corp. Circle 1, Coimbatore vs. P.Subramanian, Coimbatore

In the result, the appeal filed by the Revenue stands dismissed

ITA 1670/CHNY/2017[2013-14]Status: DisposedITAT Chennai28 Feb 2018AY 2013-14

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamonyआयकर अपील सं./Ita No.1670/Chny/2017 "नधा"रण वष" / Assessment Year : 2013-14

For Appellant: Shri Vijay Kumar PunnaFor Respondent: Shri A. Arjunaraj, CA
Section 28Section 54ESection 54F

Shuklendu A Baji, Mumbai vs. Deputy Commissioner of Income Tax Range- 24(2), Mumbai

In the result, this appeal by the assessee stands allowed

ITA 5209/MUM/2017[2006-07]Status: DisposedITAT Mumbai05 Feb 2018AY 2006-07

Bench: Shri Shamim Yahyaआयकर अपील सं./I.T.A. No. 5209/Mum/2017 ("नधा"रण वष" / Assessment Year: 2006-07) Shuklendu A. Baji Dy. Cit, Range – 24(2), C-13, Room No. 601, 6Th Floor, 901, Whispering Heights, बनाम/ Mind Space, Chindholi Bunder Road, Pratyakshakar Bhavan, Vs. Malad (W), Mumbai-400 064 Bandra Kurla Complex, Bandra (E), Mumbai-400 051 "थायी लेखा सं./जीआइआर सं./Pan/Gir No. Aaepb 3851 G (अपीलाथ" /Appellant) (""यथ" / Respondent) : अपीलाथ" क" ओर से / Appellant By : Shri K. Gopal & Shri Jitendra Singh ""यथ" क" ओर से/Respondent By : Ms. N. Hemalatha सुनवाई क" तार"ख / : 13.11.2017 Date Of Hearing घोषणा क" तार"ख / : 05.02.2018 Date Of Pronouncement आदेश / O R D E R Per Shamim Yahya, A. M.: This Appeal By The Assessee Is Directed Against The Order By The Commissioner Of Income Tax (Appeals) Dated 06.06.2017 & Pertains To The Assessment Year 2006- 07. 2. The Grounds Of Appeal Read As Under: 1. The Ld. Commissioner Of Income Tax (Appeals) - 41, Mumbai [Hereinafter Referred To As The "Ld. Cit(A)"] Erred In Confirming The Order Passed By Ld.

For Appellant: Shri K. Gopal &For Respondent: Ms. N. Hemalatha
Section 143(3)Section 234BSection 28Section 28(1)(va)Section 54E

The ACIT, TDS Circle, Ahmedabad vs. M/S. Hakmichand D & Sons, Ahmedabad

In the result, appeal filed by the revenue is dismissed

ITA 2194/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad27 Sept 2017AY 2010-11

Bench: Shri Mahavir Prasad & Shri Amarjit Singh)

For Respondent: Shri Urvashi Sodhan, A.R
Section 194CSection 194JSection 194J(1)(d)Section 201(1)Section 271CSection 28Section 40

Cera-Chem Pvt. Ltd., Chennai vs. ACIT, Chennai

In the result the appeal of the assessee is allowed

ITA 2213/CHNY/2016[2009-10]Status: DisposedITAT Chennai27 Sept 2017AY 2009-10

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

For Appellant: Shri Asish Tripathi, JCITFor Respondent: 30.08.2017
Section 143(1)Section 147Section 148Section 250(6)

P.S.Jagdish, Chennai vs. DCIT, Chennai

In the result, the appeal of the assessee is partly allowed for statistical purposes

ITA 1051/CHNY/2016[2011-12]Status: DisposedITAT Chennai30 Jun 2017AY 2011-12

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddy

For Appellant: Shri T.N. Seetharaman, AdvocateFor Respondent: 27.04.2017
Section 14ASection 250(6)Section 28

P.S.Shekar, Chennai vs. DCIT, Chennai

In the result, the appeal of the assessee is partly allowed for statistical purposes

ITA 1050/CHNY/2016[2011-12]Status: DisposedITAT Chennai30 Jun 2017AY 2011-12

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddyआयकरअपीलसं./I.T.A.No.1050/Mds/2016 ("नधा"रणवष" / Assessment Year: 2011-12)

For Appellant: Shri T.N. Seetharaman, AdvocateFor Respondent: 27.04.2017
Section 14ASection 250(6)Section 28

ACIT, New Delhi vs. M/S. Jagat Ram Trehan & Sons, New Delhi

In the result, the Appeal filed by the Revenue stands dismissed

ITA 5404/DEL/2011[2007-08]Status: DisposedITAT Delhi29 Mar 2017AY 2007-08

Bench: Shri H.S. Sidhu & Shri L.P. Sahu

For Appellant: Sh. R.S. Singhvi, CA & Sh. SatyajitFor Respondent: Sh. Umesh Chand Dubey, Sr. DR
Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 28

DCIT 10(1), Mumbai vs. Music Broadcast P.Ltd, Mumbai

In the result appeal filed by the revenue is hereby Dismissed

ITA 3532/MUM/2013[2008-09]Status: DisposedITAT Mumbai25 Jan 2017AY 2008-09

Bench: Shri G.S.Pannu, Am & Shri Amarjit Singh, Jm आयकरअपीलसं/I.T.A. No.3532/Mum/2013 (िनधा"रणवष" / Assessment Year: 2008-09) Dcit 10(1) बनाम/ M/S. Music Broadcast Pvt. 455, Aayakar Bhavan, Ltd. Vs. 4Th Floor, M. K. Marg, 5Th Floor, Mumbai - 400020 Rna Corporate Park, Opp. Western Express Highway, Kalanagar, Bandra (E), Mumbai - 400051 C.O. No.143/Mum/2014 (I.T.A. No. 3532/Mum/2013) (िनधा"रणवष" / Assessment Year: 2008-09) M/S. Music Broadcast Pvt. बनाम/ Dcit 10(1) Ltd. 455, Aayakar Bhavan, Vs. 5Th Floor, 4Th Floor, M. K. Marg, Rna Corporate Park, Mumbai - 400020 Opp. Western Express Highway, Kalanagar, Bandra (E), Mumbai - 400051 "थायीलेखासं./जीआइआरसं./Pan/Gir No. : Aaccm4036H (अपीलाथ"/Appellant) .. (""थ" /Respondent)

For Appellant: Shri L.N. MalikFor Respondent: Shri N. P. Singh (CIT-DR)
Section 142(1)Section 143(1)Section 143(2)Section 14ASection 28

Excelssior Designs & Projects Consolidated P. Ltd, Mumbai vs. ITO 8(1)(3), Mumbai

In the result, the appeal of the assessee is allowed

ITA 7721/MUM/2011[2006-07]Status: DisposedITAT Mumbai25 Nov 2016AY 2006-07

Bench: Shri R.C. Sharma & Shri Amarjit Singhassessment Year: 2006-07 Shri Shekhar K. Shah, Dy. Cit 3(3), 42, Miami Apartments, Aayakar Bhavan, Vs. 70A, Bhulabhai Desai Road, M.K. Road, Mumbai – 400 026 Mumbai Pan: Aajps1511P (Appellant) (Respondent) Present For: Assessee By : Shri S. Venkatraman, A.R. Revenue By : Capt. Pradeep S. Arya, D.R. Date Of Hearing : 21.09.2016 Date Of Pronouncement : 25.11.2016 O R D E R Per Amar Jit Singh: The Assessee Has Filed The Present Appeal Against The Order Dated 01.02.2010 Passed By The Commissioner Of Income Tax (Appeals) [Hereinafter Referred To As The Cit(A)]-7, Mumbai Relevant To Assessment Year 2006-07. 2. The Assessee Has Raised The Following Grounds: “1. On The Facts & Circumstances Of The Case & In Law, The Assessee Submits That The Learned Cit(A) Erred In Confirming The Addition Of Rs.5 Lacs Made By The Assessing Officer Towards Non-Compete Fee. 2. The Assessee May Be Permitted To Add To Or Amend The Above Ground Of Appeal At The Time Of Hearing.” 3. The Brief Facts Of The Case Are That The Assessee Filed His Return Of Income For The Assessment Year 2006-07 On 31.08.2006 Declaring Total

For Appellant: Shri S. Venkatraman, A.RFor Respondent: Capt. Pradeep S. Arya, D.R
Section 143(1)Section 143(2)Section 28

Shekhar K. Shah, Mumbai vs. Dy. CIT.3(3), Mumbai

In the result, the appeal of the assessee is allowed

ITA 3809/MUM/2010[2006-07]Status: DisposedITAT Mumbai25 Nov 2016AY 2006-07

Bench: Shri R.C. Sharma & Shri Amarjit Singhassessment Year: 2006-07 Shri Shekhar K. Shah, Dy. Cit 3(3), 42, Miami Apartments, Aayakar Bhavan, Vs. 70A, Bhulabhai Desai Road, M.K. Road, Mumbai – 400 026 Mumbai Pan: Aajps1511P (Appellant) (Respondent) Present For: Assessee By : Shri S. Venkatraman, A.R. Revenue By : Capt. Pradeep S. Arya, D.R. Date Of Hearing : 21.09.2016 Date Of Pronouncement : 25.11.2016 O R D E R Per Amar Jit Singh: The Assessee Has Filed The Present Appeal Against The Order Dated 01.02.2010 Passed By The Commissioner Of Income Tax (Appeals) [Hereinafter Referred To As The Cit(A)]-7, Mumbai Relevant To Assessment Year 2006-07. 2. The Assessee Has Raised The Following Grounds: “1. On The Facts & Circumstances Of The Case & In Law, The Assessee Submits That The Learned Cit(A) Erred In Confirming The Addition Of Rs.5 Lacs Made By The Assessing Officer Towards Non-Compete Fee. 2. The Assessee May Be Permitted To Add To Or Amend The Above Ground Of Appeal At The Time Of Hearing.” 3. The Brief Facts Of The Case Are That The Assessee Filed His Return Of Income For The Assessment Year 2006-07 On 31.08.2006 Declaring Total

For Appellant: Shri S. Venkatraman, A.RFor Respondent: Capt. Pradeep S. Arya, D.R
Section 143(1)Section 143(2)Section 28

Shilpa Hemant Pradhan, Thane vs. ITO WD 3(3), Thane

In the result, the appeal filed by the assessee is hereby dismissed

ITA 562/MUM/2015[2011-12]Status: DisposedITAT Mumbai28 Sept 2016AY 2011-12

Bench: Shri R.C.Sharma, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.562/Mum/2015 ("नधा"रण वष" / Assessment Year: 2011-12) Shilpa Hemant Pradhan The Income Tax Officer, Ward- बनाम/ 3(3), Room No.8, B Wing, 6Th C-1101, Sunglow, Shreeji Ville Vs. Complex, Almeida Floor, Ashar I.T. Park, Road Road,Panchpakhadi, Thane No.16-Z, Wagle Indl. Estate, (W),Mumbai – 400 601. Thane-400 604. "थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aeypp 2433 A .. (अपीलाथ" /Appellant) (""यथ" / Respondent) Assessee By: Shri M.C. Naniwadekar Department By: Shri Vikram Batra सुनवाई क" तार"ख / Date Of Hearing: 07.09.2016 घोषणा क" तार"ख /Date Of Pronouncement: 28.09.2016 आदेश / O R D E R Per Amarjit Singh, Jm:

For Appellant: Shri M.C. NaniwadekarFor Respondent: Shri Vikram Batra
Section 143(1)Section 143(2)Section 28