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| The Tax Publishers2020 TaxPub(DT) 1448 (SC) : (2020) 269 TAXMAN 0462 INCOME TAX ACT, 1961
Section 261 Section 37
Where the Department preferred SLP to appeal against the judgment of Madras High Court in M/s. Hatsun Agro Products Ltd. v. The Jt. CIT [T.C. Appeal No. 1173 of 2005, dt. 10-4-2017] : 2018 TaxPub(DT) 6687 (Mad-HC), whereby the High Court held that advantage of restraining individuals from engaging in competition was in the field of facilitating the own business of assessee and rendering it more profitable and since there was no increase in fixed capital, the payment did not encroach in the capital filed. Hence, the payments towards non-compete fee constituted revenue expenditure in the hands of the assessee, the Supreme Court dismissed the SLP as withdrawn, however, leaving question(s) of law open.
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Department preferred SLP to appeal against the judgment of Madras High Court in Hatsun Agro Products Ltd. v. Jt. CIT [T.C. Appeal No. 1173 of 2005, dt. 10-4-2017] : 2018 TaxPub(DT) 6687 (Mad-HC), whereby the High Court held that advantage of restraining individuals from enaging in competition was in the field of facilitating the own business of assessee and rendering it more profitable and since there was no increase in fixed capital, the payment did not encroach in the capital field. Hence, the payments towards non-compete fee constituted revenue expenditure in the hands of the assessee. Held: The Supreme Court dismissed the SLP and pending applications therein as withdrawn, however, leaving question(s) of law open.
REFERRED :
FAVOUR : SLP dismissed as withdrawn.
A.Y. :
INCOME TAX ACT, 1961
Section 261 Section 37
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