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2018 (7) TMI 1563 - BOMBAY HIGH COURTPayment made by the assessee towards non compete fees - Held that:- In the present case, the non-compete fee was paid to the Companies and/or its Directors / shareholders in consideration of noncompeting with the respondent for the period of one year. Thus, this payment does not get any enduring benefit to the respondent-assessee but the benefit is in the very short-term and thus allowable as revenue expenditure. The test applied is the length of benefit on account of payment of non-compete fee and if the benefit is for a short term such as one year in this case, it is Revenue in nature. The Revenue has not even attempted to point out why the above test is not correct. Disallowance of foreign exchange loss - Held that:- Issue stands concluded against the revenue and in favour of the respondent-assessee by the decision of the Supreme Court in the case of CIT vs. Woodward Governor India Pvt Ltd [2009 (4) TMI 4 - SUPREME COURT ] Disallowance of Vanda Loss - whether the said loss is speculative in nature as per section 73? - Held that:- We find that both the CIT(A) as well as Tribunal have come to a concurrent finding of fact that, the loss on account of Vanda incurred by the respondent-assessee is not on account of carrying out transactions on its own account, but is an incident of its business as share broker. Thus, the activity which has resulted in loss is only to ensure that it is not disqualified from carrying on activities as a share broker by the Stock Exchange. It needs no explanation that when a person is in the business of broking, situation would arise where the clients/principal for whom the broker is acting, may not fulfill the demand which the broker has to fulfill at its own cost, to maintain his credibility. It is this activity that results in loss. Therefore, it is an integral part of carrying on business as a stock broker. Appeal admitted on substantial question of law at (3) - Whether VSAT is a part of computer and eligible for depreciation @ 60% or @25% only?
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