Depreciation allowable on payment of non-compete fee

India Meditronic (P) Ltd Vs ACIT (ITAT Mumbai)

Conclusion: Non-compete fee was allowable as capital expenditure and depreciation could be claimed on the same.

Held: Assessee entered into exclusive distribution agreement with Medtech Devices Limited (MDL) for distribution of assessee’s products in India, which accounted for approximately 40% of the total revenue of the assessee in that year. However, the distribution agreement was terminated on account of

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