Non-Competent Fee resulting in Advantage of Enduring Nature is capital expenditure

M/s. Gkn Drive line India Ltd. Vs. CIT (Delhi High Court) Issue- Whether the ITAT was right in holding that payment of Rs. 70 lakhs made by the appellant on account of non-competition for a period of five years was in the nature of capital expenditure? High Court held that It is clear that the consideration of Rs.70 lakhs was not expressly towards the non-compete obligation, but towards smoothening the process of acquisition of the asset, i.e., the unit of SML in Madras. Approvals that were required from the financial institutions, income tax authorities and other governmental authorities were...