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Dcit, New Delhi vs M/S Excelex Bio Polymers (P) Ltd.,, New ... on 1 March, 2018 cites

Sharp Business System vs The Commissioner Of Income Tax-Iii on 5 November, 2012

However, we find that 4 ITA No.1110/Del/2013 this issue is no more res integra in view of the direct decision of the Hon'ble jurisdictional High Court in Sharp Business System VS. CIT (2012) 254 CTR 233 (Del) in which the dispute was about the granting of depreciation on non-compete fee. Rejecting the assessee's point of view, the Hon'ble jurisdictional High Court has held that : `The nature of rights of know-how, patent, copyright, trademark, license or franchise or any other right of similar nature as mentioned clearly in the section spell-out an element of exclusivity which ensures to the assessee as a sequel to the ownership. For the ownership of the intellectual property or know-how or license or franchise, it would be unable to either access the advantage or assert the right and the nature of the right mentioned or spelt-out in the provision as against the world at large or in legal parlance "in rem". However, in the case of a non-competition agreement or covenant, it was held that the advantage was a restricted one, in point of time. It did not confer any exclusive right to carry-on the primary business activity. The right can be asserted in the present instance only against L&T and in a sense, the right "in personam". Every species of right spelt-out expressly by the Statute - i.e. of the intellectual property right and other advantages such 5 ITA No.1110/Del/2013 as know-how, franchise, license etc. and even those considered by the Courts, such as goodwill can be said to be alienable. Such was not the case with an agreement not to compete which is purely personal. As a consequence, it is held that the contentions of the assessee are without merit.'
Delhi High Court Cites 19 - Cited by 47 - S R Bhat - Full Document
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