2015 (1) TMI 968

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....f law raised by the revenue in this appeal read thus:             a) Whether on the facts and circumstances of the case and in law, the ITAT is right in deleting the dis-allowance of the sum of Rs. 67,50,000/- paid by respondent to it's outgoing Chairman without appreciating the fact that the same payment was made by the respondent not ....

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....apadia Chairman and full-time Director of the respondent-assessee company had resigned from the service of the company in the assessment year in question. According to the assessee, exit of Mr. Darius Kapadia from the service of the assessee company would be detrimental to the interest of the business unless he was restrained from carrying on similar business. Accordingly, a sum of Rs. 67,50,000 w....

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....idered 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 sa....