Section 28(va), read with sections 55 and 28(ii) - Non-compete fees

The Supreme Court of India held that Prior to insertion of clause (va) of section 28, compensation amount received towards loss of source of income and non-competition fee could only be treated as capital receipt and was not liable to tax.
The ITAT Delhi held that Interest payable to sundry creditors, who supplied material for construction of property, is an allowable deduction under section 24(b).
The High Court of Bombay held that in case of distribution or marketing activities when goods are purchased from associated entities and sales are affected to unrelated parties without any further processing, then, RPM (resale price method) is most appropriate method to determine ALP of said transaction.