Non-compete rights are Intangible asset eligible for depreciation: HC

Pr. CIT Vs Piramal Glass Limited (Bombay High Court) Section 32(1)(ii) Rights acquired by the assessee under the said agreement not only give enduring benefit, protected the assessee’s business against competence, that too from a person who had closely worked with the assessee in the same business. The expression ‘or any other business or commercial rights of similar nature’ used in Explanation 3 to sub-section 32(1)(ii) is wide enough to include the present situation and make Assess eligible to claim depreciation on Non-compete rights. FULL TEXT OF THE HIGH COURT ORDER / JU...