Supreme Court Allows Non-Compete Fee as Revenue Expenditure u/s 37(1); Reverses High Court View, Matters Remanded to ITAT | SC Ruling (19 Dec 2025)

Non-compete fee allowable revenue expense under section 37(1); Reverses High Court ratio
December 19, 2025

Supreme Court reverses High Court judgment, holds that non-compete fee payment is allowable revenue expense under section 37(1) of Income tax Act; Several assessee Appeals where assessee itself treated non-compete fee as capital expenditure, have been restored back to ITAT to make determination as per ratio laid down by Apex Court in current case at hand

NOTE : Judgment was pronounced moments ago by a Bench of Justice Manoj Misra and Justice Ujjal Bhuyan.