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2015 (1) TMI 968 - HC - Income TaxDis-allowance of the sum paid to outgoing Chairman - ITAT deleted the addition - Held that:- Object of making payment was to derive an advantage by eliminating the competition over a period of three years and the said period cannot be considered as sufficiently long period so as to ward off competition from Mr. Kapadia for a long time in future or forever so as to hold that benefit of enduring nature is received from such payment. The Tribunal has recorded a finding that exit of Mr. Kapadia would have immediate impact on the business of the assessee- company and in order to protect the business interest the assessee had paid the said amount to ward off the competition. Thus the decision of the Tribunal is based on finding of facts and therefore, first question cannot be entertained. - Decided against revenue. Bad debts claim - whether after the amendment to Sec. 36(1)(vii) of the Act it is no longer required for the respondent to prove that the debt has become bad for claiming the deduction? - Held that:- The said question stands answered against the revenue by the decision of the Apex Court in the case of T.R.F. Ltd. v. Commissioner of Income Tax reported in (2010 (2) TMI 211 - SUPREME COURT).- Decided against revenue.
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