Reassessment valid as a portion of non-compete fee related to purchase of intangible assets not deductible: HC

INCOME TAX : Where assessee-company entered into collaboration agreements with its affiliate companies and paid non-solicitation/non-compete fees to them which was claimed and allowed as revenue expenditure, but later Assessing Officer found that portion of such fees was for purchase of license and right to manufacture and sell products which was of capital nature, since assessee did not explain said fact in respect to agreement, reopening of assessment was justifiedINCOME TAX : Where assessee-company entered into collaboration agreements with its affiliate companies and paid non-solicitation/non-compete fees to them which was claimed and allowed as revenue expenditure, but later Assessing Officer found that portion of such fees was for purchase of license and right to manufacture and sell products which was of capital nature, since assessee did not explain said fact in respect to agreement, reopening of assessment was justifiedwww.taxmann.com Latest Case LawsRead More

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