Held that Compete fees paid to keep the erstwhile partner from doing competing business for seven years. Arrangement to endure for a substantial period, i.e., seven years certain position in the market by keeping the erstwhile partner out. Payment was capital expenditure. (AY.2001-02)
Sharp Business System v. CIT (2026) 484 ITR 496 (Delhi) (HC) Editorial : Reversed in Sharp Business System (Through Finance Director Mr. Yoshihisa Mizuno) v. CIT (2026) 484 ITR 509 // 308 Taxman 285 (SC)
S.37(1) : Business expenditure-Capital or revenue-Compete fees paid to keep erstwhile partner from doing competing business for seven years. Arrangement to endure for a substantial period, i.e., seven years certain position in the market by keeping the erstwhile partner out-Payment was Capital expenditure.
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