M/s Metro Tyres Ltd. Vs. Assistant Commissioner of Income Tax
Case No: ITA No:- 1165/Del/2023
Court: INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH: ‘E’: NEW DELHI)
Date: 2/24/2025
Parties Involved
appellantM/s Metro Tyres Ltd.
respondentAssistant Commissioner of Income Tax, Central Circle-5, New Delhi
Facts Summary
The assessee, M/s Metro Tyres Ltd., filed its return of income for the Assessment Year 2018-19 declaring an income of Rs. 20,74,65,120/-. The case was selected for complete scrutiny, and notices under sections 143(2) and 142(1) of the Income Tax Act were issued. The Assessing Officer found that Rs. 7,02,596/- was claimed in respect of non-compete fees, out of which Rs. 6,92,920/- was claimed as depreciation on non-compete fees. The AO disallowed this depreciation, considering non-compete fees no…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the non-compete fee is an intangible asset under Section 32(1)(ii) of the Income Tax Act, allowing depreciation.
Precedents Relied Upon
4 precedents cited in this judgement.