Disallowance of Non-Compete Fee under the Income Tax Act

Last updated: 11 May 2021

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This Income Tax Appellate Tribunal case concerns the disallowance of a non-compete fee claimed by M/s. Pricewaterhouse Coopers Private Limited for the assessment year 2009-10. The Assessing Officer disallowed the claim, a decision upheld by the Commissioner of Income Tax (Appeals). The assessee has appealed this decision to the Tribunal.

Court :
ITAT Kolkata

Brief :
This appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals) - 14, (hereinafter the “ld. CIT(A)”), passed u/s. 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 29/12/2017, for the Assessment Year 2009-10.

Citation :
ITA No. 359/Kol/2018

IN THE INCOME TAX APPELLATE TRIBUNAL
KOLKATA ‘A’ BENCH, KOLKATA

(Before Sri J. Sudhakar Reddy, Hon’ble Accountant Member & Sri Aby T. Varkey, Hon’ble Judicial Member)

ITA No. 359/Kol/2018
Assessment Year: 2009-10

M/s. Pricewaterhouse Coopers Private Limited................Appellant
Block-EP, Plot-Y-14
Salt Lake City
Sector-V
Kolkata – 700 091
[PAN : AABCP 9181 H]

Vs.

Asstt. Commissioner of Income Tax, Circle-2(2), Kolkata.....…......Respondent

Appearances by:
Smt. C.S. Agarwal, Sr. Counsel & Smt. K.M. Gupta, Adv., appeared on behalf of the assessee.
Shri Goulen Hangshing, CIT, D/R, appearing on behalf of the Revenue.

Date of concluding the hearing : March 22nd, 2021
Date of pronouncing the order : April 21st, 2021

ORDER

Per J. Sudhakar Reddy, AM :-

This appeal filed by the assessee is directed against the order of the Learned Commissioner of Income Tax (Appeals) - 14, (hereinafter the “ld. CIT(A)”), passed u/s. 250 of the Income Tax Act, 1961 (the ‘Act’), dt. 29/12/2017, for the Assessment Year 2009-10.

2. The assessee is a company and is primarily engaged in the activity of providing management consultancy services and also accounting and business advisory services. It filed its return of income on 29/09/2009 declaring total income of Rs.22,42,11,130/-. The return was revised twice and in the second revised return of income, the assessee disclosed total income of Rs.22,64,57,400/-. The Assessing Officer passed an order u/s 143(3) of the Act on 21/03/2013, determining the total income of the assessee at Rs.155,42,46,330/- interalia disallowing the claim of the assessee of loss incurred on foreign exchange and making disallowance on depreciation on lease assets, disallowance of charges paid to PWC firms and making additions on account of disallowance of noncompete fee and non-refundable grant.

2.1. Aggrieved the assessee carried the matter in appeal without success. The ld. First Appellate Authority gave detailed reasons as to why he has agreed with the order of the Assessing Officer.

3. Further aggrieved, the assessee is in appeal before us.

To know more in details find the attachment file