Quiz for the week (22 Dec 2025) :
Son (P) Ltd is a family concern engaged in manufacture of processed betel nuts with good market reputation. The founder and his 2 sons managed the company as whole time directors. A dispute arose in the family such that one son wanted to exit the company. It was decided that he would be paid Rs.50 lakhs by the company and he would not do competing business for the next 5 years. His shareholding would be transferred to other shareholders equally for agreed consideration. Is the amount paid as non-compete fee deductible in the hands of the company?
Share your thoughts on the above on or before 29th December, 2025