Payment of non-compete fees to retiring partner is revenue expense

Samkeet Arya Homes LLP Vs ITO (ITAT Ahmedabad) ITAT Ahmedabad held that payment of non-compete fees to retiring partner is revenue expenditure. Accordingly, considering the same as capital expenditure not justifiable. The appeal is allowed to that extent. Facts- During assessment proceedings, AO held that the Rs. 38,00,000/- claimed in AY 2017-18 was non-business expenditure and should not have been allowed as a deduction. Therefore, the amount was disallowed and added back to the total income of the assessee firm. CIT(A) dismissed the appeal of the assessee. Being aggrieved, the present appea...