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2011 (7) TMI 401 - AT - Income TaxDisallowance - Non Competition Fee - revenue expenditure or capital expenditure - Held that:- expenditure claimed by the assessee in pursuance of non-compete agreement are capital expenditure, the deduction of which cannot be granted to the assessee as revenue expenditure - issue is squarely covered against the assessee and in favour of the Revenue by recent decision of the Special Bench of the Tribunal in Tecumseh India (P.) Ltd. V/s Addl.CIT (2010 -TMI - 205282 - ITAT, DELHI) Amortization of Trade Licence Fee - held that:- the payments are staggered over the period of seven years. The rights granted to PGG are non-exclusive rights to use the trademarks. In a sense, the assessee paying the installment as he uses them, which shows that it is in the nature of Revenue only. Accordingly, the same is allowed. Payment on termination of Joint Venture Agreement and other agreements - Held that:- keeping in view indemnification clause No.19 of the Agreement and in the absence of any documentary evidence in support of the Article published in the magazines, we respectfully following the order of the Tribunal in Procter and Gamble Home Products Ltd. Versus JCIT (2010 -TMI - 207147 - ITAT, Mumbai) hold that the expenditure of Rs.12,26,40,000/- is in the nature of capital expenditure not allowable as revenue expenditure under section 37(1) of the Act.
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