Termination Payment with Non-Compete Clause Classified as Revenue Expenditure, Not Capital Expenditure, in Employment Termination Agreements.

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....Nature of compensation/settlement amount paid to the erstwhile MD - capital or revenue expenditure - it is common practice in case of termination of employment to put forth the condition not to engage in act of competition for a year. This cannot be considered to treat the above payment as capital in nature. - AT....