The assessee acquired running businesses of various bottling companies restricting them from sharing their knowledge and know-how in relation to the acquired business for a specified period. The assessee claimed deduction of the non-compete fee paid to them as deferred revenue expenditure on amortised basis over the period of non-competition. In the assessment order for the AY 2001-02,being the first year of payment, the AO disallowed the proportionate deduction on the ground that the non-compete fee was capital expenditure, resulting in benefit of enduring nature. The CIT(A) upheld the order of the AO. Similar findings were given in AY 2002-03. The ITAT following the rule of consistency and dismissed this ground of the assessee.(AY. 2004-05 to 2007-08)