Allowing the appeal of the assessee the Court held that ; since payment made as non-compete fee did not entail any enduring benefits to assessee in its business, same was to be allowed as revenue expenditure .Followed, Empire Jute Co. Ltd. v. CIT (1980) 124 ITR 1 (SC).(AY. 2000-01)
Asianet Communications Ltd. v. CIT (2018) 407 ITR 706 / 257 Taxman 473 /( 2019) 175 DTR 202 (Mad.)(HC)
S. 37(1) : Business expenditure -Capital or revenue -Non-compete fee for five years – Allowable as revenue expenditure .