circumstances of the case
the Tribunal erred in holding that non-compete fee paid
aggregating to Rs.3,00,00,000/- was not allowable revenue ... circumstances of the
case, the Tribunal erred in holding that the non-compete fee
paid was in the nature of initial outlay and thus capital
depreciation amounting to Rs.81,45,129 on non-
compete payment on the contention that non-compete payment is not
in the nature ... depreciation on goodwill of Rs.1,49,06,459/- and on non-compete fees of
Rs.81,45,129/- both @ 25%. The Assessing Officer show
Appellant.
8. The Assessing Officer further erred in disallowing non-
compete fee paid as revenue expenditure, without considering the
plea of the appellant, duly supported ... Non-competition agreement 540.00
Licenses 70.00
Warranties 101.00
TOTAL 711.00
37. In Gr.No.8 the Assessee has sought deduction of Non-compete fee
years. The respondent-assessee as per the MOU
received a non-compete fee of Rs.6.60 crores out of which Rs.6 crores
were ... respondent assessee for the assessment
year 1995-96, the entire non-compete fee of Rs.6.60 crores was treated
as a capital receipt
competition but for such
agreement of non-compete. Therefore the right acquired
under a non-compete agreement is a right for which a
valuable consideration ... without that, the other
businessman can compete with the first businessman.
When by payment of non-compete fee, the businessman
gets his right what
form of non-compete rights under Section
32 of the Act having treated the said non-compete fee as capital
expenditure in nature.
4) That ... Assessing Officer rejected the
claim of the assessee for allowance of non-compete fee of
Rs.5,94,84,980/-as revenue expenditure. This disallowance
expenditure of Rs. 6 crores claimed to have been paid, as non-compete fees to M/s VBC Industries Ltd. (hereinafter referred ... expenditure in the Act like Section 35D do not cover the non-compete fees. Therefore, I hold that the impugned expenditure cannot be considered
truly all material facts with reference to the non-taxability of the non-competing fees of Rs. 3.2 crores. Notice under Section ... would strengthen the view of the appellant regarding non-taxability of the receipt of non-compete fee. Further, in view of the insertion
non-competition. It was further
held that the son of the appellant was not paid any such non-compete
5
fee or amount despite ... there
was no colourable device involved, and that, as a result, non-compete
fee payable under the Deed of Covenant was not taxable under Section
executing a non-compete
agreement dated 22.08.2008 for a consideration of
Rs.2,00,00,000 (Rupees Iwo Crores Only). This non-
compete agreement ... non-compete agreement
is purely personal. Such rights obtained, can in no case,
be a 'right in-personam' as payment of non-compete
