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2019 (9) TMI 805 - AT - Income TaxDisallowance u/s 14A read with Rule 8D - CIT-A deleted the disallowance - HELD THAT:- There is clear finding of the AO as well as the CIT(A) that there is no exempt income. Thus, there is no need to interfere with the findings of the CIT(A). - decided in favour of assessee. TDS u/s 194L - disallowance on non-deduction of TDS on the payment of non-compete fee - HELD THAT:- From the perusal of the decision of Sharp Business System [2012 (11) TMI 324 - DELHI HIGH COURT] it can be seen that non compete fee did not confer any exclusive right to carry-on the primary business activity. The right is restricted only to the particular party or individual and does not have the exclusivity over the rest of the world. Thus, non-compete fee cannot be termed as intangible asset. The Hon’ble High Court has also set out the differences between the rights conferred by goodwill and rights acquired by the non compete agreement. Therefore, depreciation claimed on the said non compete fee cannot be allowed. The case laws cited by the Ld. AR will not support the case of the assessee has the jurisdictional High Court decision has given a clear finding relating to noncompete fee. Hence, Ground No. 2 of the revenue’s appeal is allowed.
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