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TMI Blog2021 (9) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... ter referred to as "the Tribunal"], 'C' Bench in ITA.Nos.467, 468 & 469/Mds/2015 for the assessment years 2002-03, 2004-05 and 2005-06 respectively. T.C.A.No.1119 of 2015 has been filed by the revenue under Section 260A of the Income Tax Act, 1961 ['the Act' for brevity] challenging the order dated 26.06.2015 passed by the Income Tax Appellate Tribunal [hereinafter referred to as "the Tribunal"], 'D' Bench in ITA.No.2761/Mds/2014 for the assessment years 2003-04. 3.The following substantial questions of law arises for consideration in all the four appeals: "1.Whether on the facts and circumstances of the case, the Tribunal was right in allowing depreciation on non compete fee at 25%? 2.Is not the finding of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecision of the Delhi High Court in the case of Sharp Business System and it has been held as follows : "36. So far as the decision in Sharp Business System (supra) is concerned, as pointed out earlier, in paragraph 5 of the judgment, it has referred to the decision of this Court in G.D.Naidu. The discussion is in paragraph 9 and the conclusion is in paragraph 10. 37. In paragraph 9 of the judgment, the Court has not discussed the decision of G.D.Naidu, though it has referred to it in paragraph 5 of the judgment. This is pointed out because, the Court has discussed the decision in Blaze & Central (P.) Ltd. (supra), which was distinguished in G.D.Naidu. We find that in paragraph 9 of the judgment, the Court after referring to Empire Jute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, we are not in respectful agreement with the reasoning given by the Hon'ble Division Bench in Sharp Business System (supra). 39. It would be relevant to note that, in the case of Sharp Business System (supra), the Jointventure company was incorporated in the assessment year 2001-02 and in the first year of business, with a view to warding off competition, it entered into agreement by paying a non-compete fee of Rs. 73 Crores to L& T Ltd., of setting-up or undertaking or assisting in the setting-up or undertaking any business in India, of selling, marketing and trade of electronic office products for seven years and this amount was treated as deferred revenue expenditure in the assessees books of accounts and written-off over corresp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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