9911796707
TMI Blog2020 (12) TMI 1107X X X X Extracts X X X X X X X X Extracts X X X X ..... intangible asset viz., goodwill/customer list as claimed by him - Decided in favour of assessee. - Shri Duvvuru RL Reddy, Judicial Member And Shri S. Jayaraman, Accountant Member For the Appellant : Mr.S.P.Chidambaram, Advocate For the Respondent : Mrs. R.Anita, JCIT ORDER PER S.JAYARAMAN, ACCOUNTANT MEMBER: The assessee filed this appeal against the order of Commissioner of Income Tax (Appeals)-3, Chennai, in ITA No.90/16-17/A-3 dated 29.09.2017 for the assessment year 2013-14. 2. M/s. Rentokil India P.Ltd., the assessee is engaged in the business of providing pest control services. It claimed depreciation on customer list and goodwill at the rate of 25% treating them as an intangible asset. While making the assessment for the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eved, the assessee filed this appeal. 3. The Ld. AR submitted that on similar facts, the co-ordinate Bench of this Tribunal in its case in ITA No.444 445/Chny/2018 for the assessment years 2010-11 and 2014-15 dated 26.07.2018 has allowed the appeals on the issue of depreciation on goodwill. Similarly, in ITA No.2660/Mds/2016 dated 15.11.2017 has allowed this issue in its favour for the assessment year 2011-12. Therefore, he relied on those orders. 4. Per contra, Ld. DR supported the orders of the lower authorities. 5. We heard the rival submissions. The co-ordinate Bench of this Tribunal in ITA Nos. 444 445/Chny/2018 vide order dated 26.07.2018 for the assessment years 2010-11 2014-15 has allowed the issue of depreciation on goodwill, the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO had disallowed the assessee s claim for depreciation holding that the Business Transfer Agreement contained non-compete clauses and hence depreciation was not allowable on the non-compete fee. The AO held that the assessee was attempting to claim the depreciation on the payment in respect of non-compete fee by changing nomenclature. It was a submission that the assessee had acquired the businesses by the Business Transfer Agreement on a Slump Sale basis. In the books of account of the assessee, the assessee had valued the assets and the goodwill/customer list had been treated as an intangible asset and depreciation claimed thereon. It was a submission that though there is non-compete clause in the Business Transfer Agreement, no amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... composite agreement and under the agreement, the transferor had transferred all its rights, copy rights to the transferee and in order to strengthen those rights transferred, the non-compete clause was supporting the clause to strengthen the commercial right which is transferred in favour of the transferee. In the present case also, the Business Transfer Agreement is a composite agreement and the non-compete clause therein was supporting clause to strengthen the commercial rights which had been transferred to the assessee herein. Further, a perusal of the decision of the Co-ordinate Bench of this Tribunal, Pune A Bench, in the case of M/s.Cosmos Co-op Bank Ltd., shows that even the customer list has been treated as falling within the expre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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