https://www.taxtmi.com/caselaws?id=331175 The High Court held that the payment of Rs. 6 Crores as Non-compete fees by the Assessee to VBC Industries Ltd. was an allowable business expenditure of revenue nature. The court agreed with the Tribunal's decision, which considered the expenditure as revenue in nature based on the Supreme Court's judgment in Empire Jute Co. Ltd. v. CIT. The court concluded that the payment was related to preventing competition from the transferor company, constituting the profit-earning apparatus of the Assessee. Therefore, the appeal was dismissed in favor of the Assessee. en-us Wed, 13 Jul 2016 00:00:00 +0530 Tue, 16 Aug 2016 11:18:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=331175 The High Court held that the payment of Rs. 6 Crores as Non-compete fees by the Assessee to VBC Industries Ltd. was an allowable business expenditure of revenue nature. The court agreed with the Tribunal's decision, which considered the expenditure as revenue in nature based on the Supreme Court's judgment in Empire Jute Co. Ltd. v. CIT. The court concluded that the payment was related to preventing competition from the transferor company, constituting the profit-earning apparatus of the Assessee. Therefore, the appeal was dismissed in favor of the Assessee. Case-Laws Income Tax Wed, 13 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=331175