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\u00a02001-02,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)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 37(1) : Business Expenditure-Capital or revenue-Non-Compete fee-In the first year of payment, proportionate deduction disallowed holding the same as capital expenditure-Rule of consistency is to be followed.<\/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-41754","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-aRs","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41754","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=41754"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41754\/revisions"}],"predecessor-version":[{"id":41755,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/41754\/revisions\/41755"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=41754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=41754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=41754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}