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2020 (4) TMI 723 - HC - Income TaxAddition u/s 37(1) - non-competition fee - revenue or capital expenditure - HELD THAT:- Tribunal considering the decision in the case of M/s McDowell & Co. Ltd. [2002 (2) TMI 302 - ITAT BANGALORE] held that the entire payment by the assessee is allowable as revenue expenditure and not merely 1/4th of payment towards non-competition fee as it does not bring in any capital asset and held that the payment is allowable under Section 37(1) of the Income Tax Act and directed the Assessing Officer to give appropriate relief after re-computing the income as per the direction of this Tribunal and modified the order of the Tribunal to the said extent. We find no error in the order passed by the Tribunal. It has followed its earlier order in the case of M/s McDowell & Co. Ltd correctly - Substantial question of law is answered against the revenue.
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