Depreciation allowable on non-compete fees: HC

PCIT Vs Ferromatic Milacron India Pvt Ltd (Gujarat High Court) We may recall the Assessing Officer does not dispute that the expenditure was capital in nature since by making such expenditure, the assessee had acquired certain enduring benefits. He was, however, of the opinion that to claim depreciation, the assessee must satisfy the requirement of section 32(1)(ii)  of the Act, in which, Explanation 3 provides that for the purpose of the said sub-section the expression “assets” would mean [as per clause (b)] intangible assets, being know- how, patents, copyrights, trade marks, licenses, ...