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2018 (1) TMI 448 - AT - Income TaxDisallowance of depreciation u/s 32 - intangible assets - amount paid for non compete fees - AO denied the claim holding that the business is of specialize nature and there are no chances that other parties can enter into the business due to its complexity - Held that:- This issue squarely is covered against the assessee in view of the decision of the Hon'ble Delhi High Court in case of Sharp Business Systems Vs CIT [2012 (11) TMI 324 - DELHI HIGH COURT] has decided this issue against the assessee that non compete fee is not an eligible intangible asset as the words “similar business or commercial rights” have to necessary result in an intangible asset against the entire word which can be asserted as such to qualify for depreciation u/s 32(1)(ii) of the Act which non compete fees lacks. In the present case though goodwill of 57.30 million was paid but that is not the issue in dispute. In view of the decision of the Hon’ble Jurisdictional High Court we reverse the finding of the ld CIT(A) in granting deprecation to the assessee on non compete fees and restored the order of ld Assessing Officer. In the result, the solitary ground of the appeal of the revenue is allowed.
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