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2016 (1) TMI 1094 - AT - Income TaxReopening of assessment - receipt of non-compete fee undisclosed - Held that:- From the record we found that during the course of original assessment proceedings u/s 143(3) of the Act, the A.O. has called all the details with regard to the payment of non-compete fee and after examining the same, allowed the assessee’s claim of such non-compete fee as revenue in nature. Thereafter, on the very same set of facts, the A.O. changed his opinion and reopened the assessment stating that non-compete fee paid by the assessee is capital in nature which gives enduring benefit to the assessee, hence, cannot be allowed. By the impugned order, the ld. CIT(A) has dealt with all the relevant details with regard to the facts on record to the effect that there is a change of opinion. Non-compete fee - revenue v/s capital expenditure - Held that:- So far as assessee’s claim of revenue expenditure is concerned, we set aside the order of the Ld. CIT(A) on this issue, by following the order of the Tribunal in assessee’s own case in the A.Y. 2004-05 dated 28.02.2011 where non compete fee was treated as capital expenditure. Claim for depreciation on non compete fee - Held that:- So long as the non compete fee in question is capital expenditure, the same is entitled for deprecation. Accordingly, we direct the AO to allow the claim of depreciation on the amount of non compete fee paid, treating the same as intangible assets. We direct accordingly.
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