Treatment of Non-Compete Fees & Depreciation on Software Licenses

CIT Vs Computer Age Management Services Pvt. Ltd. (Madras High Court)

In a significant ruling, the Madras High Court has allowed a 60% depreciation rate on computer software licenses, particularly emphasizing the specific entry in the tax laws. The case of CIT Vs Computer Age Management Services Pvt. Ltd. revolved around two primary issues: the depreciation rate for software licenses and the treatment of non-compete fees as revenue expenditure.

The Revenue had filed these appeals

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