The Tax Publishers2020 TaxPub(DT) 4842 (Mum-Trib)

INCOME TAX ACT, 1961

Section 32

Following assessee's own case for assessment year 2012-13, assessee was held to be entitled to depreciation on non-compete fee as an intangible asset under section 32(1)(ii).

Depreciation - Allowability - Non-compete fee, whether an intangible asset eligible for depreciation -

Revenue challenged order of CIT(A) directing AO to allow depreciation on non-compete fees. Case of revenue was that non-compete fees was not an asset and was only a right available against the contracting parties.Held:<./i> Tribunal in assessee's own case for assessment year 2012-13 upheld order of CIT(A) in deleting disallowance of depreciation. Following the same, appeal of revenue was dismissed.

Followed:Dy. CIT v. IMCD Group B.V. India Branch [ITA No. 1544/Mum/2016, dt. 11-7-2018] and Pentasoft Technologies Ltd. v. Dy. CIT (2014) 264 CTR 187 (Mad) : 2014 TaxPub(DT) 1813 (Mad-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16



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