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2017 (1) TMI 248 - HC - Income TaxValuation towards non-compete fee - whether non-compete and brand acquisition were equally important components in the transfer of an undertaking - Held that:- Considering with the apparent intention of the parties to attribute some amount of the total consideration towards Non-compete as seen from clause 3.6 of the Non-compete Agreement. The learned counsel would, upon instructions, suggest that a sum of ₹ 1 crore might be adopted as a reasonable valuation towards non-compete fee. In the aforesaid facts and circumstances, the sum of ₹ 1 crore towards non-compete appears to be proper and would serve the ends of justice. We are conscious of the fact that in attributing an amount of Rs. One crore towards negative covenant, we are substituting yet another value in preference to those already adopted by the lower authorities. However the factual aspects of the matter, as noted by us in paragraph 11 and 12 have not been taken into consideration, and this, we believe, makes a critical difference. The Substantial Question of Law is answered in favour of the Revenue and against the Assessee
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