Assessee Company is a manufacturer and trader of non-alcoholic beverages. Assessee had acquired running business of various bottling companies and restricted them from sharing their knowledge and know-how in relation to the acquired business for specified period. Assessee claimed deduction for such payment as deferred revenue expenditure on amortized basis over the period of non-competition. The AO disallowed the proportionate deduction on the ground that non-compete fee was capital expenditure, resulting in enduring benefit and therefore not allowable as revenue expenditure. The CIT (A) upheld the order of the AO. Given the fact that for AY 2002-03, the said view was upheld by the Tribunal and following the rule of consistency, the Hon’ble Tribunal upheld the order of the CIT (A) in the present case as well. (AY.2004-05 to 2007-08)