Non-Competent Fee paid is Intangible Asset- Depreciation allowable

DCIT Vs Ms. Sapa Extrusion India Pvt. Ltd. (ITAT Bangalore)

Payment of non-compete fee gave the assessee, commercial right to carry on manufacturing activity without competition from one major manufacturer. The assessee was also able to retain old customers consequent to the non-compete agreement. Ppayment of non-compete fee resulted in acquisition of an intangible asset and the assessee was entitled to claim depreciation on such intangible asset. Assessee acquired the intangible asset which falls within the meaning of the e

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