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2011 (11) TMI 372 - HC - Income TaxNon-compete fees - capital expenditure or revenue expenditure – assessee contending it to be revenue expenditure in tax return and at same time treating it as capital expenditure ( Intangible assets ) in books of account – question of whether depreciation is available if treated as capital expenditure remitted to A.O. by Tribunal – Held that:- In view of decision in case of Tecumseh India Pvt. Ltd. (2010 (7) TMI 685 - ITAT, DELHI ) holding that warding off competition in business will constitute capital expenditure, Tribunal rightly held that the expenditure was capital in nature. Though the AO would not have to consider the nature of expenditure, as that has been determined by the Tribunal, at the same time, whether depreciation thereupon is to be allowed or not u/s 32(1)(ii) of the Act has to be decided. Thus, no fault is found in the order of the Tribunal remitting the case back on this aspect to the AO. - Decided against the assessee.
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