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2015 (10) TMI 1267 - AT - Income TaxNon-compete fees paid - whether CIT(A) legally erred in not considering the non-compete fees as an intangible asset (capital expenditure) and not allowing the depreciation for the current year as well as consequential effect for the future years u/s.32(1)(ii) ? - Held that:- Applying the proposition of law laid down in the case of Everest Advertising Pvt. Ltd. [2015 (1) TMI 968 - BOMBAY HIGH COURT] and other High Courts/Tribunal, we hold that non-compete fee paid by the assessee did not create any capital assets, the same was revenue in nature. Accordingly, the AO is directed to allow the same as revenue expenditure. - Decided in favour of assessee.
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