Held that non -compete fee is not an intangible asset as per section 32 (1)(ii) and Explanation thereto hence not entitle to depreciation . Followed Sharp Business Systems v. CIT ( 2012) 211 Taxman 567 / 254 CTR 233 ( Delhi)(HC) . ( TS-325 -ITAT -2022( Delhi) ( AY. 2014 -15 ) (Dt. 31 -3 -2022)
Sagar Ratna Restaurants Pvt Ltd v . ACIT ( 2022) 195 ITD 88 / BCAJ – July -P. 79 ( Delhi)( Trib)
S. 32 : Depreciation -Non- compete fee – Intangible assets – Right in personam and not right in rem – Not entitle to depreciation [ S. 32(1)(ii) ]