Net Capable Sdn Bhd provides internet space to various businesses to place their products to be sold via cyberspace. On 1 April 2020, Saudi Trading (Dubai), a company in Dubai acquired an exclusive right for 3 years to promote Middle East products via the net, which Net Capable undertake not to accept similar placement in the net. Net Capable was paid RM400,000 as rental of the net space for 3 years.

Determine with brief explanations and by reference to ITA and case laws whether or not the exclusive right payment of RM400,000 is liable to income tax. the case.