2018 (3) TMI 1655

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s of manufacturing speciality chemicals used in oil drilling industry. It commenced its operation during the year under consideration after purchase of business of M/s EP Industrial and Agrochemicals Pvt. Ltd. in February, 2007 as a going concern. Having purchased this business as a slump sale, the assessee got the assets valued by a firm of valuers. Total slump sale consideration was bifurcated into tangible and intangible assets. In the present appeal, we are concerned only with the amount attributed as non-compete fee of Rs. 10,72,10,000/- which is a part of the slump sale consideration. The AO has not disputed the bifurcation of slump sale consideration into different tangible and intangible assets, including the amount shown as non-com....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....uthorities with the remarks `Left'. As such, we are proceeding to dispose of the appeal ex parte qua the assessee. 5. It is observed that the assessee purchased the business of M/s EP Industrial & Agrochemicals Pvt. Ltd., in February, 2007 as a going concern and allocated Rs. 10.72 crore towards non-compete fee by treating it as an item of 'intangible asset.' We have noted supra that the AO has not disputed the allocation of Rs. 10.72 crore as non-compete fee out of total slump sale consideration. There is no cross appeal by the assessee. Thus the action of the ld. CIT(A) in treating such amount as not deductible as revenue expenditure in the year of payment, has attained finality. As such, we are required to consider the eligibility of de....