2015 (2) TMI 1361

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.....P.Chidambaram,Advocate ORDER A. 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....

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....ome of the assessee at Rs. 5,39,17,696/- after making 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 th....

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.... author of that order. The facts of the case in the present appeal are identical 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-....

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....alue of the parties. It can have no actual marketable value and so it cannot be an asset. 5.1. On 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 ci....