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2015 (2) TMI 1361 - AT - Income TaxDepreciation on non compete fee at 25% - Depreciation on intangible assets - According to the ld. DR right to personal services under a contract of service is un-assignable; it cannot be bought or sold and as no actual marketable value and so it cannot be an asset - HELD THAT:- As decided in Pentasoft Technologies Ltd. [2013 (11) TMI 1057 - MADRAS HIGH COURT] where assessee carrying on business in software development etc. entered into an agreement with one ‘P’ for hiving off and transfer of software development and training divisions from ‘P’ and paid certain amount to ‘P’ towards acquisition of intellectual property rights and non compete fee, since agreement between parties was a composite agreement, assessee was entitled to depreciation on intellectual property rights as well as on non compete fee. Therefore, the assessee is entitled for depreciation in non-compete fee paid - Decided against revenue.
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