Whether non-competition fee paid to assessee allowable as revenue expenditure?

Procter & Gamble Distribution Co. Ltd. Vs JCIT (ITAT Mumbai)- Whether the non-competition fee paid to the assessee is allowable as revenue expenditure– Whether the amount paid for licence fee is revenue expenditure for the rights granted which are non-exclusive rights to use the trademarks- Whether the expenditure incurred for termination of manufacturing agreement and for termination of all other agreements is capital in nature as the payment was for termination of JVA and as per the terms of the JVA, no liability would be cast on any party towards the other party for loss of anticipated sale or prospective profits. – Assessee’s appeal partly allowed.

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES, ‘F’, MUMBAI

BEFORE S/SHRI D.K.AGARWAL (JM) AND J.SUDHAKAR REDDY(A.M)

ITA No. 3596/Mum/2003

(Assessment Year: 1997- 98)

Procter & Gamble Distribution Company Limited,(since merged with Procter & Gamble Home Products Limited), P&G Plaza, Cardinal Gracias Road, Chakala, Andheri (East), Mumbai- 400099. PAN: AAACP4046L	V/s	Joint Commissioner of Income Tax, Spl. Rg. 5, Mumbai.
		RESPONDENT
APPELLANT

ITA No. 3661/Mum/2003
(Assessment Year:1997- 98)

Dy. Commissioner of Income Tax, Circle 7(1), 452, Aayakar Bhavan, M K Marg, Mumbai- 400020

V/s

M/s Procter & Gamble Distribution  Co. Ltd., Tiecicon House, Dr. E. Moses Road, Mumbai- 400025.

PAN: AAACP4046L APPELLANT  RESPONDENT