Sterling Tools Ltd., New Delhi vs Jcit, Special Range- 8, New Delhi on 20 December, 2019
17. So far as the second question in relation to deferment or splitting of
the amounts by the appellant-assessee is concerned, we are of the view that
since the non-compete agreement was for the period of more than one year
and the appellant-assessee had claimed it as expenditure every year until the
continuation of the agreement, the assessee is entitled for claiming the
amount as a revenue expenditure in every year (proportionately) in light of
the judgment of Hon'ble the Supreme Court in Taparia Tools (supra).