Case Law Details
Mahindra Holidays & Resorts Ltd Vs DCIT (LTU) (ITAT Chennai)
ITAT Chennai held that depreciation towards payment as non-compete fee for purpose of business of assessee is duly allowable.
Facts- The assessment of the assessee was reopened u/s 147 of the Act. Two reasons for reopening were (1) Excess claim of depreciation for 15% on Electrical Fitting Capitalized, instead of 10%, (2) Treating of non-compete fee as an intangible asset and claimed depreciation @25%.
Objections of the assessee were considered by the AO but have not accepted, finally the proposed disallowances were confirmed for Rs. 23,88,822/- and Rs. 50,00,000/-towards Excess claim of depreciation on Electrical Fitting by 5% and Depreciation @25% on non-compete fee, respectively.
Aggrieved by the order of AO u/s 143(3) r.w.s. 147 of the Act, assessee preferred an appeal before the Ld CIT(A), but no success. Now, the assessee being aggrieved with the order of Ld CIT(A), is in appeal before us.
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