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2022 (2) TMI 580 - HC - Income TaxAllocable expenditure between the 10A Unit and non-exempt unit - Determination of expenditure on Software Technology Park and Non-Software Technology Park on the basis of gross Profit and not on the basis of turn over - HELD THAT:- First question of law raised in this appeal has already been considered and decided by this Court in favour of the Assessee in the case of Commissioner of Income Tax Vs. Pentasoft Technologies Ltd. [2013 (11) TMI 1057 - MADRAS HIGH COURT].as held revenue does not dispute the fact that the major portion of the expenditure incurred by both the units are detectable from the accounts maintained. Only in respect of such of those issues where the expenditure could not be deducted the commissioner upheld the contention of the assessee. Revenue has not placed any material to show how this working would distort the allocable expenditure on the STP unit. Depreciation on Intellectual Property rights and Non-Compete fee treated as intangible assets - HELD THAT:- Second substantial question of law raised in this appeal has already been considered and decided by this Court in favour of the Assessee in the case of Pentasoft Technologies Ltd [2013 (11) TMI 1057 - MADRAS HIGH COURT] wherein as analysed the agreement and also in the previous portion of this order elaborated upon the various terms and conditions, which bind the parties had observed that the earlier transfer of the trade mark, patents and other rights in favour of the assessee was undoubtedly the transfer of intangible assets, which in terms of section 32(1)(ii) of the Act would be a capital asset entitled to depreciation. Decided in favour of the Assessee
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