The customer relationship rights were in the nature of non-compete fees and such rights were akin to business and commercial rights. In the assessee’s case, depreciation on customer relationship rights treating them as goodwill was allowed following the Supreme Court judgment in the case of CIT v. Smifs securities Ltd ( 2012) 348 ITR 302 (SC). Assessee cannot take the benefit of new claim in reassessment proceedings . ( AY.2008-09)
Incap Contract Manufacturing Services Pvt. Ltd. v. Dy. CIT (2020)78 ITR 130 ( Bang) (Trib)
S. 32 : Depreciation – Customer relationship rights —Non-compete fees akin to any other business or commercial rights — Depreciation allowable- Cannot take benefit of new claim in reassessment proceedings . [S. 32(1)(ii), 147 ]