Depreciation allowable on Non-Compete Fees – Section 32

DCIT Vs IMCD Group B.V. India Branch (ITAT Mumbai) The issue under consideration is whether the depreciation is allowed on Non- Compete Fees under section 32 of the Income Tax Act? In the present case, the assessee in its appeals contended that the amounts paid by the assessee over and above and the net realizable value of the trade debtors, trade creditors and the trade stock for acquisition of an on-going concern is nothing but goodwill and is eligible for depreciation. Alternatively, it was also contended that the excess consideration paid is non-compete fee and eligible for deduction U/s. ...