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2021 (10) TMI 242 - HC - Income TaxClaim of depreciation - Payment of non-compete fee - Whether non-compete fees is an intangible asset of any other business or commercial rights of similar nature as per section 32 (1) (ii)? - HELD THAT:- The Division Bench of this Court in Piramal Glass Limited, [2019 (6) TMI 891 - BOMBAY HIGH COURT] has held that the payment of non-compete fee would fall under the expression “or any other business or commercial rights of similar nature” used in explanation 3 to Sub Section 32 (1) (ii). Also decided in Ferromatice Milacron India (P.) Limited [2018 (10) TMI 615 - GUJARAT HIGH COURT] rights acquired by the assessee under the said agreement not only give enduring benefit, protected the assessee's business against competence, that too from a person who had closely worked with the assessee in the same business. The expression "or any other business or commercial rights of similar nature" used in Explanation 3 to subsection 32(1)(ii) is wide enough to include the present situation - Decided in favour of assessee.
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