Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (8) TMI 750 - AT - Income TaxDepreciation on the non-compete rights - Held that:- No merit in the action of lower authorities declining the claim of depreciation on non-compete payment made for acquiring non-compete right which is an intangible asset eligible for claim for depreciation u/s 32(1)(ii) of the Act. See Commissioner of Income-tax, Bangalore Versus Ingersoll Rand International Ind. Ltd. [2013 (11) TMI 1057 - MADRAS HIGH COURT ] wherein held the commercial right comes into existence whenever the assessee makes payment for non-compete fee - that right which the assessee acquires on payment of non-compete fee confers in him a commercial or a business right which is held to be similar in nature to know-how, patents, copyrights, trademarks, licences, franchises - Therefore the commercial right thus acquired by the assessee unambiguously falls in the category of an 'intangible asset'. - Decided in favour of assessee.
|