Depreciation on non-compete fee upheld as an intangible asset when prior year precedent covered identical facts.

Depreciation on a non-compete fee treated as an intangible asset was held allowable where the facts were identical to the assessee's earlier year, and that prior year view had already accepted depreciation on the same asset. The ITAT Mumbai followed the assessee's own precedent and found no basis to depart from it. As a result, the disallowance made by the Assessing Officer could not be sustained, and the Revenue's challenge failed.

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Issues: Whether depreciation was allowable on non-compete fee treated as an intangible asset.

Analysis: The issue was found to be covered by the assessee's own earlier year decision, which had upheld allowance of depreciation on the same asset. The facts for the year under appeal were identical, and the earlier view was followed. On that basis, the disallowance made by the Assessing Officer could not be sustained.

Conclusion: Depreciation on non-compete fee was allowable, and the Revenue's challenge failed.

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