Monday 5 December 2011

Sharp Business Systems ( India) Ltd v Dy CIT ( 2011) Delhi Tribunal

Expenditure incurred by the assessee to ward off the competition for a period of seven years during which any company could have set up its products and reputation in the market, expenditure cannot be allowed as revenue expenditure. As non –compete fee is held to be capital expenditure , claim for treating it as revenue expenditure entitled to deduction for seven years is also not allowable.

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