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TMI Blog2015 (12) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... , being ITA No.611/Hyd/2014, on the ground that certain mistakes apparent from record have been noted by the assessee and accordingly notified in the present Miscellaneous Application. 2. It is stated in the present Miscellaneous Application that in Ground no.7 relating to depreciation on non-compete fee, two issues have been raised under sub-ground (a) and (b). They are- (a) Depreciation amounting to Rs. 6,67,420 in respect of non-compete fee paid to Medispan Ltd. by Medicorp Ltd. (amalgamating company) in the previous year relevant to assessment year 2002-03; (b) Depreciation amounting to Rs. 6,56,200 in respect of non-compete fee paid to Sudhir Vaid in relation to Concord Biotech Limited in the previous year relevant to assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 16.1.2014 in assessee's own case for assessment year 2008-09 cited supra, wherein a similar issue contained corresponding Ground no.15(b) in the appeal for that year, was considered and decided in favour of the assessee and against the Revenue, vide para 47 which reads as follows- "47. This ground is against the claim of depreciation on different amounts paid by the assessee. The sub ground(b) is with reference to the claim of depreciation of Rs. 8,89,893/- on brought forward written down value of Rs. 35,59,570/- in respect of non-compete fee paid to M/s. Medispan Ltd by Medicorp Technolgoies Ltd. in previous year relevant to assessment year 2002-2003. Consequent to merger of the Medicorp Technologies Ltd. with the assessee-company, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his appeal." 20. As for the second issue, against (b) above, relating to depreciation @ 25% amounting to Rs. 6,56,250 on brought forward written down value of Rs. 26,25,000 in respect of non-compete fee of Rs. 40,00,000 paid in assessment year 2007-08 to Sudhir Vaid in relation to Concord Biotech Limited, learned representatives of both the sides have agreed that this issue is squarely covered in favour of the Revenue and against the assessee by the order of the Tribunal dated 16.1.2014 in assessee's own case for assessment year 2008-09 cited supra, wherein a similar issue, raised by way of ground no.15(a), was considered and decided, vide paras 48 to 52 thereof, which read as follows- "48. The next claim i.e., Ground No.15(a) is with re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation on the brought forward written down value seems to be not correct. Be that as it may, we have proceeded to examine the issue as if the claim was made in this year only. 49. Before the Assessing Officer and DRP, the assessee relied on the decision of the CIT vs. Medicorp Technologies India Ltd. which was upheld by the ITAT, Chennai Bench (supra). The learned Assessing Officer relying on the decisions of the ITAT, Chennai Bench in the case of AB Mourya Pvt. Ltd. in ITA.No.1293/2006 dated 23.11.2007 and Guruji Entertainment Net Work Ltd. reported in 14 SOT 556 (Del.); M.M. Nissim & Co. vs. ACIT (2007) 18 SOT 274 (Mum.) and Motor Surveyors Pvt. Ltd. vs. ITO 32 SOT 268 (Chennai) rejected the claim of the assessee and DRP upheld the orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T vide ITA.No.2212/Mad/2006 dated 13.01.2012 has held, as under : "From the decision of the hon'ble Delhi High Court in the case of CIT v. Hindustan Coco Cola Beverages (P.) Ltd. [2011] 331 ITR 192 (Delhi) it is clear that 'business or commercial rights of similar nature' are not manufactured or produced over-night, but are brought into existence by experience and reputation. The non-compete fee is outcome of an agreement entered into between two parties. It does not represent any intangible asset, such as, knowhow, patents, copyrights, trade marks, licences, franchises, etc. Therefore, in view of decision of the hon'ble Delhi High Court in the case of HindustanCoca Cola Beverages P. Ltd. noncompete agreement would not cr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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