Payment for warding off competition in business even to a rival dealer will constitute capital expenditure and to hold them capital expenditure it is not necessary that non-compete fee is paid to create monopoly rights

CASE LAWS DETAILS DECIDED BY: ITAT, DELHI BENCH, SPECIAL BENCH, NEW DELHI, IN THE CASE OF: Tecumseh India Pvt. Ltd. Vs. Addl. CIT, APPEAL NO: ITA No. 3759/Del/2003, DECIDED ON July 30, 2010 ORDER PER I.P. BANSAL, JUDICIAL MEMBER This Special Bench is constituted by the order of Hon’ble President dated 2nd September, 2008 to decide the following questions:- 1. “That on the facts and circumstances of the case and in law the CIT(A)-IXI, New Delhi [hereinafter referred to as CIT(A)] erred in upholding disallowance of Rs. 2,65,00,000 being the non-compete fee paid to M/s Whirlpool of In...