Case Law Details
Adler Mediequip Pvt. Ltd. Vs DCIT (ITAT Pune)
Held that assessee had failed to satisfy the conditions precedent to claim as revenue expenditure, as the expenditure was incurred during the previous year relevant to the assessment year under consideration. Therefore, the claim cannot be allowed as deduction
Facts- The appellant is a company incorporated under the provisions of the Companies Act, 1956. The ROI for the AY 2017-18 was filed disclosing Rs. Nil income. The assessee reported some international transaction in Form No. 3CEB. AO referred the said transactions to TPO. TPO passed order u/s 92CA(3) suggesting upwards TP adjustments of Rs. 1,70,51,220/-.
Accordingly, AO passed draft assessment order proposing TP adjustment of Rs. 1,70,51,220/- and disallowing claim for allowance of non-compete fee of Rs. 8,26,31,590/-.
On receipt of the draft assessment order, the appellant had filed objection before the Hon’ble DRP contesting the disallowance of non-compete fee as revenue expenditure on the ground that the entries in the books of accounts do not determine the allowability of the claim for deduction and without prejudice to the above, it is pleaded that the depreciation should be allowed on non-compete fee.
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