Non-Competent Fee is Capital Expenditure, Depreciation not allowable

Hindustan Coca-Cola Beverages Pvt. Ltd. Vs DCIT (ITAT Delhi) In the given case, the assessee had claimed deduction as non-compete fee amortized. The assessee explained that during the year under consideration, it had acquired running business of various bottlers directly or through amalgamation. The non-compete fee was paid to the bottlers for not disclosing the confidential information relating to the business and for not competing in similar line of business in their respective territories for a period of five years. The assessee followed practice of charging amounts to P&L A/c on a pro-...