2015 (8) TMI 750

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....ears relates to the decline of claim of depreciation on the non-compete rights. 4. Rival contentions have been heard and record perused. Facts of the case in brief are that the assessee company was incorporated in 1997 as a private limited company under the Companies Act, 1956 with the objective to market and distribute the products of the Vossloh Group in India. The assessee company entered into a non-compete agreement with Mr. Shekhar Shah to prevent him from starting a business in India in completion with that of assessee company in India. As per the non-compete fee agreement the assessee company not only prevented Mr. Shekhar Shah from carrying on competetitive business but also employed him for carrying on its business. Thus the ass....

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....on-compete fee is covered by the decision of Hon'ble Karnataka High Court in the case of CIT vs. Ingersoll Rand International Ind. Ltd wherein the Hon'ble held as under:- "What is to be seen is, what are the nature of intangible assets which would constitute business or commercial rights to be eligible for depreciation. In this regard, it is necessary to notice that the intangible assets enumerated in section 32 effectively confer a right upon an assessee for carrying on a business more efficiently by utilizing an available knowledge or by carrying on a business to the exclusion of another assessee. A non-compete right encompasses a right under which one person is prohibited from competing in business with another for a stipulated ....