2015 (6) TMI 1226

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..... ppeal of the Revenue is directed against the order of the Commissioner of Income-tax (Appeals)-I, Chennai, dated 30.7.2014 and pertains to assessment year 2003-04. 2. The only issue arises for consideration is depreciation on non-compete fee. 3. Shri Joe Sebastian, ld. Departmental Representative submitted that the assessee claimed depreciation on non-compete fee. According to the ld. DR, the as .....

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..... assessee submitted that the assessee entered into non-compete agreement and acquired a commercial right. According to the ld. Counsel, the commercial right acquired by the assessee by paying non-compete fee is a capital asset, therefore, the assessee is entitled for depreciation. The ld. Counsel placed his reliance on the unreported judgment of the Hon'ble Madras High Court in the case of M/s .....

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..... the assessee. Since it was a composite agreement, the High Court found that the assessee is eligible for depreciation on the non-compete fee. In the case before us, the Assessing Officer came to the conclusion that the agreement restrains the other party in engaging in a competing business and does not in any way result in any right which could be treated as an asset. However, the CIT(A), by follo .....

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