The Commissioner Of Income-Tax-V v. Alfa Laval (India) Ltd
High Court
07 Jul 2011 In favour of: Assessee
Forum / Bench
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Parties
The Commissioner Of Income-Tax-V v. Alfa Laval (India) Ltd
Date of order
07 Jul 2011
Assessment year(s)
—
Outcome
Dismissed
Case summary
In The Commissioner Of Income-Tax-V v. Alfa Laval (India) Ltd, the High Court (2011) dismissed the appeal. The decision went in favour of the assessee.
Issue: 1.Heard.Two questions of law are raised by the revenue in this appeal which read thus : - (I) Whether on the facts and circumstances of the case, and in law the Hon'ble ITAT, Pune was justified in deleting the addition of Rs.
Decision: Accordingly the appeal is dismissed.
Summary auto-generated from the order below — read the full judgment for the complete reasoning.
The order — as passed by the High Court
rrt
IN THE HIGH COURT OF JDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTIONINCOME TAX APPEAL NO. 3727 OF 2010 ORDINARY ORIGINAL CIVIL JURISDICTIONINCOME TAX APPEAL NO. 3727 OF 2010
The Commissioner of Income-Tax-V
..Appellant.
Vs.
Alfa Laval (India) Ltd
..Respondent.
Mr. Vimal Gupta, for the Appellant.Mr.S.N.Inamdar, for the respondent.
CORAM : J.P. DEVADHAR AND A.A. SAYED, JJ.
DATE : 7TH JULY, 2011.
P.C.
1.Heard.Two questions of law are raised by the revenue in this appeal which read thus : -
(I) Whether on the facts and circumstances of the case, and in law the Hon'ble ITAT, Pune was justified in deleting the addition of Rs. 6 lacs made on account of compensation in the form of 'non- compete fees paid to Smt.Leela Poonawala, treating the same as revenue expenditure, when in fact the same are capital in nature?the Hon'ble ITAT, Pune was justified in deleting the addition of Rs. 6 lacs made on account of compensation in the form of 'non- compete fees paid to Smt.Leela Poonawala, treating the same as revenue expenditure, when in fact the same are capital in nature?
(II)Whether on the facts and circumstances of the case, and in law the Hon'ble ITAT, Pune was justified in deleting the addition of Rs.8.5 lacs made on account of compensation in the form of non-compete fees paid to Vasant N Joglekar and Shri Bipin B Mishra, treating the same as revenue expenditure, when in fact the same are capital in nature?the Hon'ble ITAT, Pune was justified in deleting the addition of Rs.8.5 lacs made on account of compensation in the form of non-compete fees paid to Vasant N Joglekar and Shri Bipin B Mishra, treating the same as revenue expenditure, when in fact the same are capital in nature?
2.The Apex Court in the case of Guffic Chem (P) Ltd Vs.Commissioner of Income-tax (2011) 198 Taxman 78 , (SC), has held that after 1/4/2003, payment of non-compete fee would be revenue in nature. In this view of the matter no fault can be found with the order of the ITAT. Accordingly the appeal is dismissed.
( A.A. SAYED, J. )
(J.P. DEVADHAR, J.)
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