2018 (1) TMI 385

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....enue : Sh. Kaushlendra Tiwari, Sr. DR For The Assessee : S h . Ravi Sharma, Adv. And Ms. Poonam Ahuja, Adv. ORDER PER H.S. SIDHU : JM This Appeal by the Revenue and Cross Objection by the Assessee are directed against the assessment order dated 29.7.2011 of the Ld. CIT(A)-XX, New Delhi pertaining to assessment year 2004-05. 2. The Revenue has raised the following grounds in its appe....

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....tion 37(1) of the Act. 2. That without prejudice to the Ground No. 1, the CIT(A) ought to have allowed 10/30th of Rs. 1,21,28,599/- paid on account of non-compete fee as the benefit of such non competition convenant is for a limited period of 30 months. 3. That the respondent reserves its right to add, alter, amend or withdraw any ground of objection either before or at the time ....

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....ue is in appeal before us and Assessee has filed the Cross Objection. 4. Ld. DR relied upon the order of the AO and reiterated the contentions raised in the grounds of appeal 5. On the other hand, Ld. Counsel of the assessee has reiterated the contentions raised in the grounds of appeal of the Cross Objection. 6. We have heard both the parties and perused the relevant records available wi....

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....of this agreement the seller has forfeited his right to conduct business in the territory for a period of 30 months. Therefore, the assessee in effect has acquired a right of the seller. Therefore, this particular payment as per the agreement falls within section 32(1)(ii) of the I.T. Act, 1961, as a result, the assessee is entitled for depreciation on the non-compete fee paid to the seller. Hence....