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2013 (6) TMI 675 - ITAT HYDERABADDisallowance of depreciation - Depreciation on intangible asset, goodwill and furniture and fittings - Held that:- issue in dispute is squarely covered by the decision of the Tribunal, Mumbai in the case of Kotak Forex Brokerage Ltd. v. Asst. CIT [2009] 33 SOT 237 (Mum) - any right which is obtained for carrying on the business effectively and profitably has to fall within the meaning of intangible asset. - Supreme Court in the case of CIT v. Smifs Securities Ltd. [2012] 348 ITR 302 (SC) held that goodwill is an intangible asset eligible for depreciation under section 32 of the Act. In these circumstances, we remit the issue to the file of the Assessing Officer to decide the issue in the light of the said decisions to consider the allowability of depreciation on intangible assets after getting bifurcation of payment of ₹ 75 lakhs and to allow depreciation on the goodwill at 25 per cent. Assessee himself has submitted that the learned Assessing Officer should have appreciated that during the previous year relevant to the assessment year 2008-09 the amount of ₹ 60 lakhs paid by the assessee-company for deduction of ₹ 15 lakhs in question qualifies for inclusion under the head "intangible asset" as provided under section 32(1)(ii) and is entitled to a depreciation at 25 per cent. on intangible assets. Hence, we direct the Assessing Officer to allow depreciation on goodwill at 25 per cent. on the intangible assets and with respect to furniture and fittings depreciation to be allowed at 10 per cent. since they fall under block of assets as furniture and fittings. The assessee is directed to give bifurcation of goodwill and furniture and fittings. - Decided in favour of assessee.
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