2015 (2) TMI 1361

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....nbsp;MOHAN ALANKAMONY, J. This appeal is filed by the Revenue, aggrieved by the order of the Learned Commissioner of Income Tax(A)-III,Chennai, dated 25.01.2012 in ITA No.165/07-08/A.III passed under section 143(3) read with sections 147 & 150 of the Act. 2. The Revenue has raised three elaborate grounds in its appeal, however, the crux of the issues is that:- (a) Revenue is aggrieved by the o....

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....g disallowances of depreciation Rs. 1,08,88,166/- on non-compete fees. 4. On appeal, the Ld. CIT (A) allowed the claim of depreciation on non-compete fees following the decision of the Tribunal by observing as under:- "4.2. I have carefully considered the facts of the case and the submission of the Ld. A.R. I have also gone through the decisions relied on by the Ld. A.R. and the Ld. Assessing O....

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....tical and therefore, we follow the precedent and allow this ground." Respectfully following the said ITAT decision, it is held that the noncompete fee paid should be considered as an intangible asset eligible for depreciation. Accordingly, the Assessing Officer is directed to allow the claim of depreciation on non-compete fees. The ground is allowed." 5. Before us, Ld. D.R. argued in support of....

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.... the other hand, Ld. A.R relied in the case of Pentasoft Technologies Ltd., Vs. Dy. CIT reported in [2014] 41 taxmann.com 120(Mds.) rendered by Hon'ble Jurisdictional High Court. 6. We have heard both the parties and carefully perused the materials available on record. On perusing the decision cited by the Ld. A.R. supra in the case of Pentasoft Technologies Ltd., Vs. Dy. CIT (supra) rendered by ....