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TMI Blog2018 (7) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... s and circumstances of the case. 2. On the facts and in circumstances of the case whether the CIT(A) in right in holding that the assessee is eligible for depreciation on account of non compete fee which is paid on account of trade and commerce and is a commercial right to enforce performance of the terms of the agreement. 3. For these and such other grounds that may be urged at the time of hearing, it is humbly prayed that the order of the CIT(A) in so far as it relates to the above grounds may be reversed and that of the Assessing Officer be restored. 4. The appellant craves leave to add, alter, amend or delete any of the grounds that may be urged at the time of hearing of the appeal." 3. There is a delay of about 49 days in fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxman.com 349 (Kar) wherein it was held that non-compete fee confers commercial rights which is akin to know-how, patents, copyrights, trademarks licenses, franchises and commercial rights, and therefore was intangible asset on which depreciation has to be allowed as per the provisions of section 32(1)(ii) of the Act. 5. The AO, however, did not allow claim of assessee on the ground that the department has not accepted the correctness of the decision of the Hon'ble High Court of Karnataka referred to by the assessee. According to the AO, because of low tax effect, no appeal was filed against the decision of the Hon'ble High Court of Karnataka. The AO referred to the decision of the Hon'ble Delhi High Court in the case of Sharp Business S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of AO. The ld. counsel for the assessee relied on the order of CIT(Appeals). 9. We are of the view that in the light of the undisputed factual position that payment by the assessee in the present case is similar to payment that was considered by the Hon'ble High Court of Karnataka in the case of Ingersoll Rand International Ltd. (supra), we are of the view that the order of CIT(Appeals) does not call for any interference. In fact, in para 6 of the judgment of the Hon'ble High Court of Karnataka, the decision of the Hon'ble Delhi High Court has been considered, but the Hon'ble High Court of Karnataka has still decided the issue in favour of assessee, while concluding that non-compete fee paid is an intangible asset acquired by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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