Sharp Business System v. CIT

254 CTR 233High Court2012#2319 most cited

What is Sharp Business System v. CIT authority for?

Depreciation is allowable on a non-compete fee as it constitutes an intangible asset, even if the right acquired cannot be transferred, provided it is treated as part of a block of assets.

50

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2016 to 2026.

Also referred to as

Sharp Business System v CIT · section 32(1)(ii) · non-compete fee · depreciation on intangible asset · capital expenditure · block of assets · Delhi High Court · Madras High Court · Areva T & D India Ltd.

Also reported as

211 Taxmann 576211 Taxmann.com 576

Sections most often in play

Section 32(1)(ii)Section 143(3)Section 14ASection 153ASection 153DSection 2(11)Section 41(2)Section 43(6)
Read the full judgment

Issues it is cited on

depreciation on non-compete feesection 24(1)section 41(2)non-compete feerule 8d disallowancesection 2(1)section 14a disallowancesection 2(11)section 32(1)(ii)section 36(i)(iii)section 43(6)section 24(a)

Judgments citing Sharp Business System v. CIT

ITO, Cw-1(1), Chennai vs. Inspirisys Solutions Ltd, Kilpauk

The appeals of the Revenue stand dismissed

ITA 9/CHNY/2022[2012-13]Status: DisposedITAT Chennai26 Jul 2024AY 2012-13

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita Nos.9,10 & 11/Chny/2022 (िनधा"रणवष" / Assessment Years: 2012-13, 2014-15 & 2015-2016) & C.O.Nos.5, 6 &7/Chny/2023 (In Ita Nos.9,10 & 11/Chny/2022) The Income Tax Officer, Vs. M/S. Inspirisys Solutions Limited, Corporate Ward 1(1) First Floor, New Door Nos. 57,59,63 & 64, Chennai 600 034. Dowlath Towers, Taylors Road, Kilpauk, Chennai 600 010. [Pan: Aaaca 5622M] (अपीलाथ"/Appellant) (Respondent/ Cross Objector) Department By : Shri. Nilay Baran Som, Irs, Cit. Shri. Arv Srinivasan, Irs, Addl. Cit Assessee By : Shri. N.V. Balaji, Advocate सुनवाई क" तार"ख/Date Of Hearing : 20.06.2024 घोषणा क" तार"ख /Date Of Pronouncement : 26.07.2024

For Appellant: Shri. N.V. Balaji, AdvocateFor Respondent: Shri. Nilay Baran Som, IRS, CIT
Section 14ASection 253

…rth of the transferee company stood increased post- amalgamation. There is no such finding in this case. In the present case, the agreement specifically mentions that it is a non-compete fee. The Hon'ble High Court, Delhi in the case of Sharp Business System (254 CTR 233) held that payment made towards non- compete fee is not eligible for depreciation observing that "The right can be asserted in the present instance only against L&T and in a sense, the right "in personam"...... 13. For the above reasons, this Court is of the opinion that the words "similar business or commercial rights" have to necessarily result…

ITO, Cw-1(1), Chennai vs. Inspirisys Solutions Ltd, Chennai

The appeals of the Revenue stand dismissed

ITA 11/CHNY/2022[2015-16]Status: DisposedITAT Chennai26 Jul 2024AY 2015-16

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita Nos.9,10 & 11/Chny/2022 (िनधा"रणवष" / Assessment Years: 2012-13, 2014-15 & 2015-2016) & C.O.Nos.5, 6 &7/Chny/2023 (In Ita Nos.9,10 & 11/Chny/2022) The Income Tax Officer, Vs. M/S. Inspirisys Solutions Limited, Corporate Ward 1(1) First Floor, New Door Nos. 57,59,63 & 64, Chennai 600 034. Dowlath Towers, Taylors Road, Kilpauk, Chennai 600 010. [Pan: Aaaca 5622M] (अपीलाथ"/Appellant) (Respondent/ Cross Objector) Department By : Shri. Nilay Baran Som, Irs, Cit. Shri. Arv Srinivasan, Irs, Addl. Cit Assessee By : Shri. N.V. Balaji, Advocate सुनवाई क" तार"ख/Date Of Hearing : 20.06.2024 घोषणा क" तार"ख /Date Of Pronouncement : 26.07.2024

For Appellant: Shri. N.V. Balaji, AdvocateFor Respondent: Shri. Nilay Baran Som, IRS, CIT
Section 14ASection 253

…rth of the transferee company stood increased post- amalgamation. There is no such finding in this case. In the present case, the agreement specifically mentions that it is a non-compete fee. The Hon'ble High Court, Delhi in the case of Sharp Business System (254 CTR 233) held that payment made towards non- compete fee is not eligible for depreciation observing that "The right can be asserted in the present instance only against L&T and in a sense, the right "in personam"...... 13. For the above reasons, this Court is of the opinion that the words "similar business or commercial rights" have to necessarily result…

ITO, Cw-1(1), Chennai vs. Inspirisys Solutions Limited, Chennai

The appeals of the Revenue stand dismissed

ITA 10/CHNY/2022[2014-15]Status: DisposedITAT Chennai26 Jul 2024AY 2014-15

Bench: Hon’Ble Shri Manoj Kumar Aggarwal, Am & Hon’Ble Shri Manu Kumar Giri, Jm आयकरअपील सं./ Ita Nos.9,10 & 11/Chny/2022 (िनधा"रणवष" / Assessment Years: 2012-13, 2014-15 & 2015-2016) & C.O.Nos.5, 6 &7/Chny/2023 (In Ita Nos.9,10 & 11/Chny/2022) The Income Tax Officer, Vs. M/S. Inspirisys Solutions Limited, Corporate Ward 1(1) First Floor, New Door Nos. 57,59,63 & 64, Chennai 600 034. Dowlath Towers, Taylors Road, Kilpauk, Chennai 600 010. [Pan: Aaaca 5622M] (अपीलाथ"/Appellant) (Respondent/ Cross Objector) Department By : Shri. Nilay Baran Som, Irs, Cit. Shri. Arv Srinivasan, Irs, Addl. Cit Assessee By : Shri. N.V. Balaji, Advocate सुनवाई क" तार"ख/Date Of Hearing : 20.06.2024 घोषणा क" तार"ख /Date Of Pronouncement : 26.07.2024

For Appellant: Shri. N.V. Balaji, AdvocateFor Respondent: Shri. Nilay Baran Som, IRS, CIT
Section 14ASection 253

…rth of the transferee company stood increased post- amalgamation. There is no such finding in this case. In the present case, the agreement specifically mentions that it is a non-compete fee. The Hon'ble High Court, Delhi in the case of Sharp Business System (254 CTR 233) held that payment made towards non- compete fee is not eligible for depreciation observing that "The right can be asserted in the present instance only against L&T and in a sense, the right "in personam"...... 13. For the above reasons, this Court is of the opinion that the words "similar business or commercial rights" have to necessarily result…

Metro Tyres Limited, New Delhi vs. ACIT Central Circle-05, New Delhi

In the result, Appeal filed by the assessee is allowed

ITA 1873/DEL/2020[2014-15]Status: DisposedITAT Delhi24 Jul 2024AY 2014-15

Bench: Sh. Pradip Kumar Kedia & Shri Yogesh Kumar U.S.

For Appellant: Sh. Salil Kapoor, Adv & ShFor Respondent: Sh. Anshul, Sr. DR
Section 14ASection 271(1)(c)Section 274

…posed pursuant to the addition of Rs. 21,89,970/- made on account of disallowance of depreciation on non compete fees. In quantum proceedings, the Ld. CIT(A) has relied on the decision of Jurisdictional High Court in the case of Sharp Business System Vs. CIT 254 CTR 233 and the said Judgment is under challenge before the Hon'ble Supreme Court. The Hon’ble Delhi High Court 6 Metro Tyres Limited Vs. ACIT in the case of PCIT Vs. Pepsico India Holding Pvt. Ltd. ITA No. 167/2023 dated 16/04/2024 allowed the claim of depreciation on non compete fee after considering the Judgment of Delhi High Court in the case of…

ACIT Circle-4(2), New Delhi vs. Beacon Higher Education Services Pvt Ltd, New Delhi

In the result, the appeal of the Revenue is allowed

ITA 2335/DEL/2019[2012-13]Status: DisposedITAT Delhi17 Jul 2023AY 2012-13

Bench: Sh. Saktijit Deydr. B. R. R. Kumar

For Appellant: Sh. Ajay Vohra, Sr. AdvFor Respondent: Sh. P. Praveen Sidharth, CIT DR
Section 154Section 2Section 32(1)(ii)

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’, NEW DELHI Before Sh. Saktijit Dey, Vice President Dr. B. R. R. Kumar, Accountant Member ITA No. 2335/Del/2019 : Asstt. Year: 2012-13 ACIT, Vs. M/s Beacon Higher Education Services Pvt. Ltd., S-40, 2nd Floor, Vasant Circle-4(2), New Delhi-110002 Square Mall, Plot-A, Sector-B, Pocket-V, Vasant Kunj, New Delhi-110070 (APPELLANT) (RESPONDENT) PAN No. AAECB1283F Assessee by : Sh. Ajay Vohra, Sr. Adv. Sh. Deepesh Jain, Adv. Revenue by : Sh. P. Praveen Sidharth, CIT DR Date of Hearing: 18.04.2023 Date of Pronouncement: 17.07.2023 ORDER Per Dr. B. R. R. Kumar, Accoun…

Harita Fehrer Ltd., Chennai vs. DCIT, CC - 2 (2), Chennai

Appeals stand allowed in terms of our above order

ITA 2746/CHNY/2019[2016-17]Status: DisposedITAT Chennai31 Jan 2023AY 2016-17

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.2254/Chny/2018 (िनधाBरण वषB / Assessment Year: 2011-12) & आयकरअपील सं./ Ita No.3480/Chny/2018 (िनधाBरण वषB / Assessment Year: 2013-14) & आयकरअपील सं./ Ita No.3481/Chny/2018 (िनधाBरण वषB / Assessment Year: 2014-15) & आयकरअपील सं./ Ita No.2746/Chny/2019 (िनधाBरण वषB / Assessment Year: 2016-17) M/S. Harita Fehrer Limited Dcit-Corporate Circle-2(2) / बनाम/ No.29, Jayalakshmi Estates, Acit, Salary Circle-Ii Vs. Haddows Road, Chennai-600 006. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aacch-1037-R (अपीलाथ"/Appellant) : ( !थ" / Respondent) अपीलाथ" की ओर से/ Appellant By : Shri Pradeep Dinodia, (Fca), Shri Ravikumar, (Ca) & Shri Anil Kumar, (Ca) - Ld. Ars !थ"कीओरसे/Respondent By : Shri Ar.V. Sreenivasan (Add.Cit)-Ld. Dr

For Appellant: Shri Pradeep Dinodia, (FCA)For Respondent: Shri AR.V. Sreenivasan (Add.CIT)-Ld. DR
Section 143(3)Section 36(1)(vii)

…आयकर अपीलीय अिधकरण ‘ए’ "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कुमार अ6वाल ,लेखा सद9 के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.2254/Chny/2018 (िनधाBरण वषB / Assessment Year: 2011-12) & आयकरअपील सं./ ITA No.3480/Chny/2018 (िनधाBरण वषB / Assessment Year: 2013-14) & आयकरअपील सं./ ITA No.3481/Chny/2018 (िनधाBरण वषB / Assessment Year: 2014-15) & आयकरअपील सं./ ITA No.2746/Chny/2019 (िनधाBरण वषB / Assessment Year: 2016-17) M/s. Harita Fehrer Limited DCIT-Corporat…

Harita Fahrer Ltd, Chennai vs. DCIT, Corp Cir-2(2), Chennai

Appeals stand allowed in terms of our above order

ITA 3481/CHNY/2018[2014-15]Status: DisposedITAT Chennai31 Jan 2023AY 2014-15

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.2254/Chny/2018 (िनधाBरण वषB / Assessment Year: 2011-12) & आयकरअपील सं./ Ita No.3480/Chny/2018 (िनधाBरण वषB / Assessment Year: 2013-14) & आयकरअपील सं./ Ita No.3481/Chny/2018 (िनधाBरण वषB / Assessment Year: 2014-15) & आयकरअपील सं./ Ita No.2746/Chny/2019 (िनधाBरण वषB / Assessment Year: 2016-17) M/S. Harita Fehrer Limited Dcit-Corporate Circle-2(2) / बनाम/ No.29, Jayalakshmi Estates, Acit, Salary Circle-Ii Vs. Haddows Road, Chennai-600 006. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aacch-1037-R (अपीलाथ"/Appellant) : ( !थ" / Respondent) अपीलाथ" की ओर से/ Appellant By : Shri Pradeep Dinodia, (Fca), Shri Ravikumar, (Ca) & Shri Anil Kumar, (Ca) - Ld. Ars !थ"कीओरसे/Respondent By : Shri Ar.V. Sreenivasan (Add.Cit)-Ld. Dr

For Appellant: Shri Pradeep Dinodia, (FCA)For Respondent: Shri AR.V. Sreenivasan (Add.CIT)-Ld. DR
Section 143(3)Section 36(1)(vii)

…आयकर अपीलीय अिधकरण ‘ए’ "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कुमार अ6वाल ,लेखा सद9 के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.2254/Chny/2018 (िनधाBरण वषB / Assessment Year: 2011-12) & आयकरअपील सं./ ITA No.3480/Chny/2018 (िनधाBरण वषB / Assessment Year: 2013-14) & आयकरअपील सं./ ITA No.3481/Chny/2018 (िनधाBरण वषB / Assessment Year: 2014-15) & आयकरअपील सं./ ITA No.2746/Chny/2019 (िनधाBरण वषB / Assessment Year: 2016-17) M/s. Harita Fehrer Limited DCIT-Corporat…

Harita Fahrer Ltd, Chennai vs. DCIT, Corp Cir-2(2), Chennai

Appeals stand allowed in terms of our above order

ITA 3480/CHNY/2018[2013-14]Status: DisposedITAT Chennai31 Jan 2023AY 2013-14

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.2254/Chny/2018 (िनधाBरण वषB / Assessment Year: 2011-12) & आयकरअपील सं./ Ita No.3480/Chny/2018 (िनधाBरण वषB / Assessment Year: 2013-14) & आयकरअपील सं./ Ita No.3481/Chny/2018 (िनधाBरण वषB / Assessment Year: 2014-15) & आयकरअपील सं./ Ita No.2746/Chny/2019 (िनधाBरण वषB / Assessment Year: 2016-17) M/S. Harita Fehrer Limited Dcit-Corporate Circle-2(2) / बनाम/ No.29, Jayalakshmi Estates, Acit, Salary Circle-Ii Vs. Haddows Road, Chennai-600 006. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aacch-1037-R (अपीलाथ"/Appellant) : ( !थ" / Respondent) अपीलाथ" की ओर से/ Appellant By : Shri Pradeep Dinodia, (Fca), Shri Ravikumar, (Ca) & Shri Anil Kumar, (Ca) - Ld. Ars !थ"कीओरसे/Respondent By : Shri Ar.V. Sreenivasan (Add.Cit)-Ld. Dr

For Appellant: Shri Pradeep Dinodia, (FCA)For Respondent: Shri AR.V. Sreenivasan (Add.CIT)-Ld. DR
Section 143(3)Section 36(1)(vii)

…आयकर अपीलीय अिधकरण ‘ए’ "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कुमार अ6वाल ,लेखा सद9 के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.2254/Chny/2018 (िनधाBरण वषB / Assessment Year: 2011-12) & आयकरअपील सं./ ITA No.3480/Chny/2018 (िनधाBरण वषB / Assessment Year: 2013-14) & आयकरअपील सं./ ITA No.3481/Chny/2018 (िनधाBरण वषB / Assessment Year: 2014-15) & आयकरअपील सं./ ITA No.2746/Chny/2019 (िनधाBरण वषB / Assessment Year: 2016-17) M/s. Harita Fehrer Limited DCIT-Corporat…

Harita Fehrer Limited, Chennai vs. ACIT Salary Circle II, Chennai

Appeals stand allowed in terms of our above order

ITA 2254/CHNY/2018[2011-12]Status: DisposedITAT Chennai31 Jan 2023AY 2011-12

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.2254/Chny/2018 (िनधाBरण वषB / Assessment Year: 2011-12) & आयकरअपील सं./ Ita No.3480/Chny/2018 (िनधाBरण वषB / Assessment Year: 2013-14) & आयकरअपील सं./ Ita No.3481/Chny/2018 (िनधाBरण वषB / Assessment Year: 2014-15) & आयकरअपील सं./ Ita No.2746/Chny/2019 (िनधाBरण वषB / Assessment Year: 2016-17) M/S. Harita Fehrer Limited Dcit-Corporate Circle-2(2) / बनाम/ No.29, Jayalakshmi Estates, Acit, Salary Circle-Ii Vs. Haddows Road, Chennai-600 006. Chennai. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aacch-1037-R (अपीलाथ"/Appellant) : ( !थ" / Respondent) अपीलाथ" की ओर से/ Appellant By : Shri Pradeep Dinodia, (Fca), Shri Ravikumar, (Ca) & Shri Anil Kumar, (Ca) - Ld. Ars !थ"कीओरसे/Respondent By : Shri Ar.V. Sreenivasan (Add.Cit)-Ld. Dr

For Appellant: Shri Pradeep Dinodia, (FCA)For Respondent: Shri AR.V. Sreenivasan (Add.CIT)-Ld. DR
Section 143(3)Section 36(1)(vii)

…आयकर अपीलीय अिधकरण ‘ए’ "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कुमार अ6वाल ,लेखा सद9 के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.2254/Chny/2018 (िनधाBरण वषB / Assessment Year: 2011-12) & आयकरअपील सं./ ITA No.3480/Chny/2018 (िनधाBरण वषB / Assessment Year: 2013-14) & आयकरअपील सं./ ITA No.3481/Chny/2018 (िनधाBरण वषB / Assessment Year: 2014-15) & आयकरअपील सं./ ITA No.2746/Chny/2019 (िनधाBरण वषB / Assessment Year: 2016-17) M/s. Harita Fehrer Limited DCIT-Corporat…

Dr. Reddy'S Laboratories Limited, Hyderabad vs. DCIT, Circle-1(2), Hyderabad

In the result, the ground No

ITA 349/HYD/2017[2001-02]Status: DisposedITAT Hyderabad08 Jul 2022AY 2001-02

Bench: Shri Laxmi Prasad Sahu & Shri K.Narasimha Charyassessment Years: 2001-02 Dr.Reddy’S Laboratories Vs. Dcit,Circle-1(2) Limited Hyderabad 8-2-337, Road No.3 Banjara Hills Hyderabad-500 034

For Appellant: Shri P.S.R.V.V.Surya Rao, CAFor Respondent: Shri Y.V.S.T.Sai,CIT-DR
Section 28Section 32Section 32(1)(ii)Section 32(2)Section 37Section 80H

…1 Dr.Reddy’s Laboratories Limited IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘B’ Bench, Hyderabad Before Shri Laxmi Prasad Sahu, Accountant Member AND Shri K.Narasimha Chary, Judicial Member Assessment Years: 2001-02 Dr.Reddy’s Laboratories Vs. DCIT,Circle-1(2) Limited Hyderabad 8-2-337, Road No.3 Banjara Hills Hyderabad-500 034 PAN : AAACD7999Q (Appellant) (Respondent) Assessee by: Shri P.S.R.V.V.Surya Rao, CA Revenue by: Shri Y.V.S.T.Sai,CIT-DR Date of hearing: 05.07.2022 Date of pronouncement: 08. 07.2022 O R D E R Per Shri Laxmi Prasad Sahu, A.M.: This appeal filed by the assessee is directed agai…

M/S. Adler Mediequip Pvt. Ltd., Pune vs. Deputy Commissioner of Income-Tax, Central Circle -1(1), Pune

In the result, the appeal filed by the assessee stands dismissed

ITA 156/PUN/2022[2017-18]Status: FixedITAT Pune21 Jun 2022AY 2017-18
For Appellant: Shri M. P. LohiaFor Respondent: Shri Deepak Garg
Section 143(3)Section 144BSection 144C(13)Section 144C(5)Section 234BSection 234DSection 271(1)(c)Section 32Section 92C

…Shri Ajay Pitre including the intellectual rights and not of revenue nature in view of the fact that the said case is clearly is on capital account not of revenue nature. The ratio of the Hon’ble Delhi High Court in the case of Sharp Business System vs. CIT, 254 CTR 233 (Del) is squarely applicable. The Assessing Officer also doubted the true nature of 5 the agreement as it is subsequent/ continuation of the share purchase agreement. This is further corroborated by the fact that there was no evidence or details of services rendered by the said Shri Ajay Pitre. There is a dichotomy in the treatment given in the b…

Sagar Ratna Restaurants Pvt. Ltd., New Delhi vs. ACIT, Circle- 22(1), New Delhi

In the result, the appeal is dismissed

ITA 7354/DEL/2018[2014-15]Status: DisposedITAT Delhi31 Mar 2022AY 2014-15

Bench: Shri Saktijit Dey & Dr. Brr Kumarr Assessment Year: 2014-15

Section 32(1)(ii)

…IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: ‘G’, NEW DELHI BEFORE SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND DR. BRR KUMAR, ACCOUNTANT MEMBERR Assessment Year: 2014-15 Sagar Ratna Restaurants Vs. ACIT, Circle-77(1), Pvt. Ltd. C-7 Third Floor, New Delhi. Malviya Nagar, New Delhi1100 17. PAN :AAPCS5289R (Appellant) (Respondent) Appellant by None Respondent by Shri Umesh Takyar, Sr. DR Date of hearing 24.02.2022 Date of pronouncement .03.2022 ORDER PER SAKTIJIT DEY: JUDICIAL MEMBER: This is an appeal by assessee against the order dated 23.07.2018 of learned Commissioner of Income-Tax (Appeals)-8, New Delhi…

Fortis Hospitals Ltd vs. ACIT Circle 9(2) New Delhi

ITA-132/2021HC Delhi29 Jul 2021

Bench: The Learned

Section 143(3)Section 194LSection 254(2)Section 260ASection 32(1)(ii)

…ITA 132/2021 Page 1 of 12 $~23 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision: 29th July, 2021 + ITA 132/2021 FORTIS HOSPITALS LTD. ..... Appellant Through Mr.Ajay Vohra, Sr.Adv. with Mr. Aniket D. Agrawal, Ms. Manisha Sharma, Advocates versus ACIT, CIRCLE – 9(2), NEW DELHI ..... Respondent Through Mr.Sanjay Kumar, Sr.SC and Ms.Easha Kadian, Adv. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MR. JUSTICE NAVIN CHAW…

Fortis Hospitals Ltd

ITA/132/2021HC Delhi29 Jul 2021

Bench: The Learned

Section 143(3)Section 194LSection 254(2)Section 260ASection 32(1)(ii)

…ITA 132/2021 Page 1 of 12 $~23 * IN THE HIGH COURT OF DELHI AT NEW DELHI Date of Decision: 29th July, 2021 + ITA 132/2021 FORTIS HOSPITALS LTD. ..... Appellant Through Mr.Ajay Vohra, Sr.Adv. with Mr. Aniket D. Agrawal, Ms. Manisha Sharma, Advocates versus ACIT, CIRCLE – 9(2), NEW DELHI ..... Respondent Through Mr.Sanjay Kumar, Sr.SC and Ms.Easha Kadian, Adv. CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MR. JUSTICE NAVIN CHAW…

Hindustan Coca Cola Beverages Pvt. Ltd vs. DCIT Circle 12 (1)

In the result, the appeal filed by the assessee is partly allowed for statistical purposes and the appeal filed by the Revenue is dismissed

ITA 4261/DEL/2006[2003-2004]Status: DisposedITAT Delhi19 Oct 2020AY 2003-2004

Bench: Shri R.K. Panda & Shri Kuldip Singhassessment Year: 2003-04

For Appellant: Shri Ajay Vohra, Sr. AdvocateFor Respondent: Ms Sunita Singh, CIT, DR

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: C : NEW DELHI (Through Virtual Court Hearing) BEFORE SHRI R.K. PANDA, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER Assessment Year: 2003-04 Hindustan Coca Cola Beverages Vs DCIT, Private Limited, Circle-12(1), Enkay Towers, Udyog Vihar-V, New Delhi. Gurgaon, Haryana – 122016. PAN: AAACH3005M Assessment Year: 2003-04 DCIT, Vs. Hindustan Coca Cola Beverages Circle-12(1), Private Limited, New Delhi. Enkay Towers, Udyog Vihar-V, Gurgaon, Haryana – 122016. PAN: AAACH3005M (Appellant) (Respondent) Assessee by : Shri Ajay Vohra, Sr. Advocate, Shri Gaurav Ja…

Hindustan Coca-Cola Beverages Pvt. Ltd., Gurgaon vs. Deputy Commissioner of Income-Tax, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 2699/DEL/2015[2001-02]Status: DisposedITAT Delhi27 Apr 2020AY 2001-02

Bench: Ms. Sushma Chowla, V.P & Dr. B.R.R. Kumar, A.M. आयकर अपील सं आयकर अपील सं. / Ita No. 2699/Del/2015 आयकर अपील सं आयकर अपील सं िनधा"रण वष" िनधा"रण वष" / Assessment Year: 2001-02 िनधा"रण वष" िनधा"रण वष" Hindustan Coca-Cola Beverages Pvt.Ltd., Orchid Centre, 3Rd Floor, Dlf Golf Course Road, Sector-53, Gurgaon-122001. .............अपीलाथ"/Appellant Pan-Aaach3005M Vs The Dcit, Circle-12(1),New Delhi …………. ""यथ" / Respondent अपीलाथ" क" ओर से / Appellant By: Sh. Ajay Vohra, Sr.Adv., Sh. Gaurav Jain, Adv, Sh. Aditya Vohra & Ms. Meenal Goyal, Ca ""यथ" क" ओर से / Respondent By: Ms. Paramita M.Biswas, Cit Dr सुनवाई क" तारीख / घोषणा क" तारीख / Date Of Hearing : 05.03.2020 Date Of Pronouncement: 27.04.2020

For Appellant: Sh. Ajay Vohra, Sr.AdvFor Respondent: Ms. Paramita M.Biswas, CIT DR
Section 143(3)Section 250

…आयकर अपील"य अ"धकरण, "द"ल" "यायपीठ “सी”, नई "द"ल" म" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’, NEW DELHI सु"ी सुषमा चावला, उपा"य" एवं डॉ. बी आर आर कुमार, लेखा सद"य के सम" BEFORE MS. SUSHMA CHOWLA, V.P & DR. B.R.R. KUMAR, A.M. आयकर अपील सं आयकर अपील सं. / ITA No. 2699/Del/2015 आयकर अपील सं आयकर अपील सं िनधा"रण वष" िनधा"रण वष" / Assessment Year: 2001-02 िनधा"रण वष" िनधा"रण वष" Hindustan Coca-Cola Beverages Pvt.ltd., Orchid Centre, 3rd Floor, DLF Golf Course Road, Sector-53, Gurgaon-122001. .............अपीलाथ"/Appellant PAN-AAACH3005M vs The DCIT, Circle-12(1),New Delhi …………. ""यथ" / Respondent अपीलाथ"…

ACIT (OSD) Corporate Range 1, Chennai vs. Dorma India P. Ltd., Chennai

In the result appeal filed by

ITA 1666/CHNY/2019[2012-13]Status: DisposedITAT Chennai20 Nov 2019AY 2012-13

Bench: Shri N.R.S. Ganesan & Shri Ramit Kochar

For Appellant: Mr. N.V.Balaji, AdvFor Respondent: Ms.R.Anitha, JCIT
Section 143(3)Section 32

…the same should be considered towards non-compete fee and not towards goodwill. The AO observed that issue of depreciation on non-compete fee has not attained finality as Hon’ble Delhi High Court in the case of Sharp Business System v. CIT-III reported in 254 CTR 233 has held that non- compete fee will not qualify for depreciation u/s.32(1)(ii) of the 1961 Act. The AO also observed that decision of Hon’ble Madras High Court in the case of Pentasoft Technologies Ltd., v. DCIT reported in (2014) 41 taxmann.com 120(Mad.) had held that depreciation is to be allowed on payment of non-compete fee in a composite…

ACIT (OSD) Corporate Range 1, Chennai vs. Dorma India P. Ltd., Chennai

In the result appeal filed by

ITA 1665/CHNY/2019[2011-12]Status: DisposedITAT Chennai20 Nov 2019AY 2011-12

Bench: Shri N.R.S. Ganesan & Shri Ramit Kochar

For Appellant: Mr. N.V.Balaji, AdvFor Respondent: Ms.R.Anitha, JCIT
Section 143(3)Section 32

…the same should be considered towards non-compete fee and not towards goodwill. The AO observed that issue of depreciation on non-compete fee has not attained finality as Hon’ble Delhi High Court in the case of Sharp Business System v. CIT-III reported in 254 CTR 233 has held that non- compete fee will not qualify for depreciation u/s.32(1)(ii) of the 1961 Act. The AO also observed that decision of Hon’ble Madras High Court in the case of Pentasoft Technologies Ltd., v. DCIT reported in (2014) 41 taxmann.com 120(Mad.) had held that depreciation is to be allowed on payment of non-compete fee in a composite…

ACIT (OSD) Corporate Range 1, Chennai vs. Dorma India P. Ltd., Chennai

In the result appeal filed by

ITA 1664/CHNY/2019[2010-11]Status: DisposedITAT Chennai20 Nov 2019AY 2010-11

Bench: Shri N.R.S. Ganesan & Shri Ramit Kochar

For Appellant: Mr. N.V.Balaji, AdvFor Respondent: Ms.R.Anitha, JCIT
Section 143(3)Section 32

…the same should be considered towards non-compete fee and not towards goodwill. The AO observed that issue of depreciation on non-compete fee has not attained finality as Hon’ble Delhi High Court in the case of Sharp Business System v. CIT-III reported in 254 CTR 233 has held that non- compete fee will not qualify for depreciation u/s.32(1)(ii) of the 1961 Act. The AO also observed that decision of Hon’ble Madras High Court in the case of Pentasoft Technologies Ltd., v. DCIT reported in (2014) 41 taxmann.com 120(Mad.) had held that depreciation is to be allowed on payment of non-compete fee in a composite…

M/S Sangeetha Mobiles Private Limited, Bangalore vs. The Deputy Commissioner of Income Tax Circle-6(1)(1), Bangalore

In the result, Revenue’s appeal for Assessment Year 2014-15 is dismissed and the assessee’s cross appeal is allowed for statistical purposes

ITA 2344/BANG/2018[2014-15]Status: DisposedITAT Bangalore13 Mar 2019AY 2014-15

Bench: Shri N. V. Vasudevanand Shri Jason P. Boaz

For Appellant: Shri. Vikas Suryavamshi, Addl. CITFor Respondent: Shri. V. Srinivasan, Advocate
Section 143(1)Section 143(3)

…ssessee by way of non compete cannot be transferred to any other person and therefore, this judgment is not applicable in the present case and in the present case, the judgment of Hon’ble Delhi High Court rendered in the case of Sharp Business System vs. CIT, 254 CTR 233 is applicable. 6. We have considered the rival submissions. Regarding the issue in respect of allowability of depreciation on Goodwill/Non Compete Fees, we find that as per the facts noted by Hon’ble Karnataka High Court in Para 8 as reproduced below, the right acquired by way of non compete can be transferred to any other person but in the case…