Non-compete fee paid to directors to restrain them from engaging in same business was allowable deduction

IT : Where assessee engaged in business of manufacture, marketing and distribution of ice cream and dairy based frozen products, made payment of non-compete fee to two of its directors, since advantage of restraining individuals from engaging in competition was in field of facilitating assessee's own business and rendering it more profitable and there was no increase in fixed capital, payment in question was to be allowed as revenue expenditure

from www.taxmann.com Latest Case Laws https://ift.tt/2Bwahhz