Treatment of Non-compete Fees

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Rahul (Querist)
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01 March 2010 Sir, is non compete fees considered as an intangible asset & dep. allowed @ 25%? Acc. to Chennai ITAT in Medicorp Technologies India Ltd. its eligible for dep. as an intangible asset. But i have heard that recently an High Court ruling has overruled the aforesaid ITAT ruling... Whats the current position as regards treatment of non compete fees?

shrikant

shrikant (Expert)
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01 March 2010 Dear Rahul

The treatment is same. Recently no such decision given by High Court. If you know exact High Court, then it can help to find it out.