Case Law Details
M/s. Incap Manufacturing Service Pvt. Ltd. Vs DCIT (ITAT Bangalore)
The sole disputed issue raised by the assessee in respect of granting of depreciation on Customer Relationship Rights which is in the nature of non-compete fee.
We found that the co-ordinate bench of the Tribunal based on the findings of the AO. has observed that the claim of the assessee is required to be considered by treating the said payment as goodwill. We found strength in the submissions of the learned AR on the claim of depreciation on Customer Relationship Rights supported with observations of the Co-ordinate bench and following the judicial discipline, we set aside the order of the CIT(A) and direct the AO to grant depreciation on Customer Relationship Rights treating the same as Goodwill and allow the grounds of appeal of the assessee.
FULL TEXT OF THE ITAT JUDGEMENT
These are appeals filed by the assessee against different orders of the CIT(A) passed u/s 143(3) and 250 of the Income-tax Act,1961 [‘the Act’ for short]. Since issues are common in all these appeals, they were heard together and consolidated order is passed.
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