rrt IN THE HIGH COURT OF JDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 3727 OF 2010 The Commissioner of Income-Tax-V ..Appellant. Vs. Alfa Laval (India) Ltd ..Respondent. Mr. Vimal Gupta, for the Appellant. Mr.S.N.Inamdar, for the respondent. CORAM : J.P. DEVADHAR AND A.A. SAYED, JJ. DATE : 7TH JULY, 2011. P.C. 1. Heard. Two questions of law are raised by the revenue in this appeal which read thus : - (I) Whether on the facts and circumstances of the case, and in law the Hon'ble ITAT, Pune was justified in deleting the addition of Rs. 6 lacs made on account of compensation in the form of 'non- compete fees paid to Smt.Leela Poonawala, treating the same as revenue expenditure, when in fact the same are capital in nature? (II)Whether on the facts and circumstances of the case, and in law the Hon'ble ITAT, Pune was justified in deleting the addition of Rs.8.5 lacs made on account of compensation in the form of non-compete fees paid to Vasant N Joglekar and Shri Bipin B Mishra, treating the same as revenue expenditure, when in fact the same are capital in nature? 2. The Apex Court in the case of Guffic Chem (P) Ltd Vs. Commissioner of Income-tax (2011) 198 Taxman 78 , (SC), has held that after 1/4/2003, payment of non-compete fee would be revenue in nature. In this view of the matter no fault can be found with the order of the ITAT. Accordingly the appeal is dismissed. ( A.A. SAYED, J. ) (J.P. DEVADHAR, J.)