Held that\u00a0 the payment of compensation under the advertisement and agency sales termination agreement saved the expenses which the assessee would have incurred not only in the relevant previous year but also for a few years to come.\u00a0 Order of Tribunal allowing the expenditure as revenue expenditure is affirmed. Followed, \u00a0CIT v. Ashok Leyland Ltd.(1972) 86 ITR 549 (SC). Court also held that \u00a0\u00a0by paying non-compete fees under the restrictive covenant agreement the assessee acquired rights which not only gave an enduring benefit but also protected the assessee\u2019s business against competition, that too from a person who had closely worked with the assessee. Therefore, the Tribunal had not committed any perversity or applied incorrect principles to the given facts. (AY.2008-09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business expenditure-Capital or revenue-Premature Termination of advertisement and agency sales agreement-Revenue expenditure-Non-compete fee-Restrictive covenant-Capital expenditure-Intangible asset-Entitle to claim depreciation. [S. 28(va), 32] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-40962","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-aEG","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/40962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=40962"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/40962\/revisions"}],"predecessor-version":[{"id":40963,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/40962\/revisions\/40963"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=40962"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=40962"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=40962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}