TMI Blog2021 (9) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... India Ltd. [ 2021 (4) TMI 32 - MADRAS HIGH COURT] - Decided against revenue. - T.C.A.Nos.1087 to 1089 and 1119 of 2015 - - - Dated:- 18-8-2021 - Honourable Mr.Justice T.S.Sivagnanam And Honourable Mr.Justice Sathi Kumar Sukumara Kurup For the Appellant in all T.C.As : M/s.R.Hemalatha Senior Standing Counsel For the Respondent in all T.C.As : Mr.M.V.Swaroop COMMON JUDGMENT T.S.SIVAGNANAM, J. T.C.A.Nos.1087 to 1089 of 2015 have been filed by the revenue under Section 260A of the Income Tax Act, 1961 ['the Act' for brevity] challenging the common order dated 08.04.2015 passed by the Income Tax Appellate Tribunal [hereinafter referred to as the Tribunal ], 'C' Bench in ITA.Nos.467, 468 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of law which fell for consideration are the questions of law in the instant case before us. The said question was answered against the revenue and in favour of the assessee in the following terms: 14. In the decision in the case of Asianet Communications Ltd. Vs. CIT, Chennai [reported in (2018) 257 Taxman 473], a Division Bench of this Court, to which, one of us (TSSJ) was a party, had considered the same issue as to, where the non compete fee paid by the assessee was for the purpose of its business and it did not entail an enduring benefit to the assessee in its business, whether the payment of such fee was to be allowed as revenue expenditure. In this decision, the Court took note of the decision of the Delhi High Court in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen such investment was made. However, the Court in our respectful view, applied the test, which does not flow from the test laid down in Empire Jute Co. Ltd. (supra) by observing that the test is one of ascertaining whether from commercial angle and the advantage results in a capital field or it is the expenditure falls legitimately within the revenue field. Ultimately, the Court held that the arrangement for a period of 7 years is an enduring benefit. This in our respectful view, does not fulfil the test laid down by Empire Jute Co. Ltd. (supra) and in fact, the Court itself had pointed out that is not the conclusive test to determine whether expenditure is in capital field or revenue. Thus, for the above reasons, we are not in respectful ..... X X X X Extracts X X X X X X X X Extracts X X X X
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