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TMI Blog2015 (8) TMI 750X X X X Extracts X X X X X X X X Extracts X X X X ..... confers in him a commercial or a business right which is held to be similar in nature to know-how, patents, copyrights, trademarks, licences, franchises - Therefore the commercial right thus acquired by the assessee unambiguously falls in the category of an 'intangible asset'. - Decided in favour of assessee. - I .T.A. Nos. 3567 to 3569/Mum/2011 - - - Dated:- 24-4-2015 - SHRI I.P. BANSAL AND SHRI R.C. SHARMA, JJ. For the Appellant : Shri Jiger Saiya For the Respondent : Shri Sachidanand Dube ORDER PER R.C. SHARMA, A.M. : These are the appeals filed by the assessee against the orders passed by the ld. CIT(A) -4, Mumbai for the assessment years 2002-03, 2003-04 2004-05 in the matter of order passed u/s 143(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y gone through the orders of lower authorities and found from record that the assessee company has paid an amount of ₹ 50,00,000/- to Mr. Shekhar Shah by entering non-compete agreement so as to prevent him from starting a business in India in completion with that of the assessee company. The assessee company, in addition to prevent him from carrying on competitive business also employed Mr. Shekhar Shah for carrying on its business. The genuineness of the agreement has not been doubted and actual payment has also been made. Thus by entering the non-compete agreement, the assessee company not only obtained a restrictive advantage but also employed Mr. Shekhar Shah to promote and carry on such business for the assessee company which was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment for non-compete fee. Here the doctrine of ejusdem generis would come into operation and therefore the non-compete fee vests a right in the assessee to carry on business without competition which in turn confers a commercial right to carry on business smoothly. 7. This issue is also covered by the decision of Hon ble Madras High Court in the case of Pentasoft Technologies Ltd. vs. DCIT, 264 CTR 187 (Mad HC) wherein the Hon ble Court held as under:- The agreement between the parties is a composite agreement. Under the agreement, the transferor had transferred all its rights, copy rights, trade marks in respect of the trade mark 'Pentasoft' as well as the training and development division exclusively to be exploited by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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