JUDGMENT N. Kumar, J.—In all these four appeals, a common question of law arises for consideration. They are taken up for consideration together and disposed of by this common order. The assessee in ITA Nos. 237 and 238 of 2007 are one and the same whereas in I.T.A. Nos. 247 and 264 and 2007, the assessee are one and the same. The relevant assessment years are 1998-99 and 1999-2000. These appeals were admitted to consider the following substantial question of law: Whether the Appellate Tribunal was right in holding that non-computation fee received by the assessee is not a capital gain and not liable to pay income tax for that amount though such amount could be taxed under 'any other source' under Section 28 of the Act? 2. The Apex Court in the case of Guffic Chem P. Ltd. Vs. Commissioner of Income Tax, Belgaum and Another, (2011) 332 ITR 602 SC has held that payment received as non-competition fee under a negative covenant was always treated as a capital receipt till the assessment year 2003-04. It is only vide the Finance Act, 2002 with effect from 1st April, 2003 that the said capital receipt is now made taxable. The Finance Act, 2002 itself indicates that during the relevant assessment year, compensation received by the assessee under non-competition agreement was a capital receipt, not taxable under the 1961 Act. It became taxable only with effect from 1st April, 2003. It is well-settled that a tax liability cannot be created retrospectively. 3. Following the aforesaid judgment, this Court in the case of Commissioner of Income Tax and Another v. K. Chandrakanth Kini, held that the amendment brought about in 2002 with effect from 1st April, 2003 is not clarificatory but amendatory. Therefore, when the said provision is held to be not clarificatory, but amendatory, it follows earlier to the said provision, the said amount was not taxable. The said provision was not inserted by way of clarification. It was introduced only by way of amendatory and to tax such income with effect from 1st April, 2003. In the light of the aforesaid law declared by the Apex Court and this Court, the substantial question of law in these appeals are answered in favour of the assessees and against the Revenue. Hence, there is no merit in these appeals. Appeals are dismissed.