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TMI Blog2018 (1) TMI 448X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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. - ITA No. 1801/Del/2011 - - - Dated:- 28-12-2017 - SHRI BHAVNESH SIANI, JUDICIAL MEMBER AND SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER For The Revenue : Shri Subash Verma, Sr DR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of the assessee at ₹ 4767780/-. The assessee preferred appeal before the ld CIT(A), who allowed the claim of the assessee and therefore, revenue is in appeal before us. 4. The ld Departmental Representative stated that issue is squarely covered against the assessee by the decision of the Hon'ble Delhi High Court in case of Sharp Business System Vs. CIT 254 CTR 233 (Del). 5. The ld AR vehemently supported the order of the ld CIT(A) and submitted that non compete fees paid partakes the character of intangible asset in view of amendment w.e.f. Assessment Year 1999-2000 and depreciation is allowable in view of the decision of Hon'ble Supreme Court in case of Smif Securities Ltd. He referred to various clauses of the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the amendment to the income tax act by the Finance Act 1998 w.e.f. AY 1999-2000, the intangible asset are eligible for depreciation. According to him, any right which is obtained for carrying on the business will fall in the definition of intangible asset. Hence, he deleted the addition. However, 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, ITA No. 492/2012 dated 05.11.2012 wherein, in para No. 11 to 13 Hon'ble 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 agains ..... X X X X Extracts X X X X X X X X Extracts X X X X
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