INCOME TAX ACT, 1961

Section 32(1)

Depreciation - Allowability - Customer relationship rights being in nature of non-compete fees -

AO disallowed assessee's claim for depreciation on customer relationship rights (non-compete fees). Assessee contended that the customer relationship rights were akin to any other business or commercial rights and therefore eligible for depreciation under the provisions of section 32(1)(ii). Held: In assesse's own case for earlier assessment on identical issue, the Tribunal concluded that the depreciation on customer relationship rights would be allowable treating the same as goodwill. Accordingly, the AO was directed to allow assessee's claim for depreciation on customer relationship rights.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2008-09

INCOME TAX ACT, 1961

Section 147

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