Sharp Business Systems (India) Ltd. vs. DCIT (ITAT Delhi)

Payment made under non-compete agreement is capital expenditure and not result into acquisition of any intangible asset and could not be eligible for depreciation allowance and could not be claimed as deferred revenue expenditure M/s Sharp Business Systems (India) Ltd. vs. DCIT (ITAT Delhi)- The Tribunal held that payment made to ward off competition, under a covenant of non-compete, was to get established in the market and to acquire the market as per the facts of the case. The payment made was of a capital nature but could not be considered as an asset. It was not an asset entitled to deprec...