| |
| The Tax Publishers2020 TaxPub(DT) 1911 (Del-Trib) INCOME TAX ACT, 1961
Section 37(1)
Following Sharp Business System v. CIT payment of non-compete fee was capital expenditure in the hands of the assessee, on which the assessee is not entitled to claim depreciation under section 32.
|
Business expenditure - Allowability - Payment of non-compete fee whether capital expense -
Assessee challenged order of CIT(A) holding that amount of Rs. 50,64,83,985 claimed on account of 'non-compete' fees was capital expenditure in nature not eligible as a revenue expenditure by merely following orders for earlier years. Held: Payment of non-compete fee was capital expenditure in the hands of the assessee, on which the assessee is not entitled to claim depreciation under section 32. The Tribunal had relied on the decision of Jurisdictional High Court in the case of Sharp Business System v. CIT (2012) 211 Taxman 576 (Del.) and applied the same.
Followed:Sharp Business System v. CIT- III (2012) 211 taxman 576 (Del.) : 2013 TaxPub(DT) 0178 (Del-HC); CIT v. Honda Siel Power Products Ltd. (2007) 300 ITR 56 (Del.) : (2008) TaxPub(DT) 0942 (Del-HC)
REFERRED :
FAVOUR : Against the assessee
A.Y. :
INCOME TAX ACT, 1961
Section 37(1)
 SUBSCRIBE FOR FULL CONTENT
|