BEACON HIGHER EDUCATION SERVICES PVT LTD,NEW DELHI vs. ACIT CIRCLE-4(2), NEW DELHI

ITA 1867/DEL/2020Status: DisposedITAT Delhi11 February 2026AY 2016-17Bench: SHRI VIMAL KUMAR, HON'BLE (Judicial Member), MRS. RENU JAUHRI, HON'BLE (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal noted that the Supreme Court held such expenditure to be revenue in nature, allowable under Section 37(1). However, since the assessee had claimed depreciation over several years and sought to continue this due to practical difficulties, the Tribunal allowed the claim for depreciation, considering it revenue-neutral.

What were the facts?

The appeals concern Assessment Years 2016-17 and 2017-18. The core issue is the claim of depreciation on non-compete fees, treated as an intangible asset by the assessee. The assessee had executed non-compete and non-solicitation agreements and paid fees, which were treated as capital expenditure.

What were the issues?

Whether depreciation on non-compete fees paid by the assessee is allowable as a deduction, and whether brought forward losses of an amalgamating company can be claimed.

Which sections of the Income-tax Act were involved?

Section 32(1)(ii),Section 2(f),Section 72A,Section 37(1)

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Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI

Before: SHRI VIMAL KUMAR, HON’BLE & MRS. RENU JAUHRI, HON’BLE

For Appellant: Shri Y K Kapur, Advocate, Shri Jitender Singh, CIT DR
For Respondent: Shri Jitender Singh, CIT DR
Hearing: 22.01.2026Pronounced: 11.02.2026

Heard together (2 matters)

ITA No. 1867/DEL/2020
ITA No. 2574/DEL/2024

Read from the judgment's own cause title. This page is filed under one of them.

PER RENU JAUHRI :

1.

The above captioned appeals are filed by the Revenue as well as assessee against the orders u/s 250 of The Income Tax Act, 1961

1867_DEL_2020_Beacon Higher Education Services Pvt Ltd VS acit 2574_DEL_2024_DCIT VS Beacon Higher Educa

The order continues below.

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