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2018 (6) TMI 1540 - AT - Income TaxDepreciation on Goodwill / Non-Compete Fee - right acquired by the assessee as held to be non compete right - Held that:- Issue as decided in favour of the assessee by a co-ordinate bench of this Tribunal in the assessee's own case for AYs 2010-11 and 2011-12 [2017 (2) TMI 1117 - ITAT BANGALORE] wherein the co-ordinate bench of this Tribunal has followed the decision in the case of Ingersol Rand International Ind Ltd. [2014 (6) TMI 934 - KARNATAKA HIGH COURT] after duly considering the decision in the case of Sharp Business Systems [2012 (11) TMI 324 - DELHI HIGH COURT]. Thus held this right acquired by the assessee can be transferred to any other person in the sense that the assessee acquirer gets the right to enforce the performance of the terms of agreement under which the seller is restrained from competing. Therefore, we hold that even if the right acquired by the assessee is held to be non compete right then also, it is eligible for depreciation u/s 32 (1) (iii). - Decided in favour of assessee. Disallowance u/s.40(a)(i) - purchase of software - disallowance of depreciation - Held that:- Following the decision of Kawasaki Microelectronics Inc – India Branch V. DDIT (IT), Circle 1(1), Bangalore [2015 (9) TMI 9 - ITAT BANGALORE], which is on similar facts as those in the case on hand, we are of the opinion and hold that once the assessee has capitalized the payment in question though the assessee has not deducted tax at source on such payment, the provisions of Sec. 40(a)(i) cannot be invoked for disallowance of depreciation. - Revenue appeal dismissed.
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