Non compete fee is made taxable as trading receipt vide Finance Act 2003. The AO however imposed tax on such fee in AY 2001-02 in the case of [2022] 20 ITR-OL 274 (Bom).
Holding it as a capital receipt the Court held that liability cannot be created retrospectively. The SC in 425ITR420 has also held it as non taxable on this very ground.
