Non compete fee is not an eligible intangible asset for depreciation U/s. 32

DCIT Vs. EAC Industrial Ingredients India P. Ltd (ITAT Delhi)

Assessee is wholly owned subsidiary of EAS Industrial Ingredients PTE Ltd incorporated on 03.10.2005. It purchased the trading unit of Nitrex Chemicals for a total consideration of 244.06 million as a going concern on slump sale basis vide business transfer agreement dated 14.10.2005. According to the BTA the assessee has paid a non compete fee of 35.83 million for a period of five years included in above consideration. The assessee claimed Rs. 4478

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