Sale of a technical concept, that the assessee developed on his own is taxable under PGBP

Last updated: 24 February 2022

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The Tribunal ruled that the sale of a technical concept, developed by an employee for website malware monitoring, is taxable as business income. The payment received was considered revenue, not a capital gain, as the dominant intention was to prevent competition. Even if considered a capital asset, the cost of acquisition for such non-compete rights is nil, making the entire receipt taxable.

Court :
The Tribunal

Brief :
Sale of a technical concept, that the assessee developed on his own, with respect to website malware monitoring, assessable as business income.

Citation :
Ashish Tandon v. ACIT (2019) 103 taxmann.com 315 / 199 TTJ 137 / 176 DTR 353 (Ahd.) (Trib.).

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FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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