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TMI Blog2020 (4) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... cDowell Co. Ltd. [2002 (2) TMI 302 - ITAT BANGALORE] held that the entire payment by the assessee is allowable as revenue expenditure and not merely 1/4th of payment towards non-competition fee as it does not bring in any capital asset and held that the payment is allowable under Section 37(1) of the Income Tax Act and directed the Assessing Officer to give appropriate relief after re-computin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case are that Compaq Computers Pvt. Ltd., entered into an agreement with Digital Equipments India Ltd., for purchase of part of its business under agreement dated 27.04.1999. Further agreement dated 15.07.1999 was entered into between the parties for an amount of ₹ 5,00,00,000/- where non-compete fee was payable for Digital not to compete with Compaq for three years. Out of the sum of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in ITA No.576/Bang/04 (Assessment year 2000-01). 3. The Income Tax Appellate Tribunal after considering the matter, recorded a finding to admit the additional grounds with respect to claiming the 4amount as revenue expenditure. However no findings was recorded on the additional ground. The assessee preferred MP No. 63/bang/2005 seeking adjudication of the additional ground with respect to allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... months and only ₹ 1,25,00,000/- had been claimed during the current assessment year? 5. Heard the arguments of the learned counsel for the parties and perused the orders passed by the Tribunal. 6. As the Tribunal has not disposed of the ground No.9 raised before the Tribunal, the Tribunal considering the decision in the case of M/s McDowell Co. Ltd. held that the entire payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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