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2021 (12) TMI 1123 - ITAT BANGALOREDepreciation on purchase of trademark - main argument of the ld.AR is that consideration paid is only related to the trademark for ‘Jealous’ and it has not related to other trademarks viz., ‘Analyse’, Detour’ & ‘JLS’ - HELD THAT:- we find that the agreement entered for acquisition of four trademarks and not for one trademark. Being so, we are not in agreement with the arguments of the assessee’s counsel. Depreciation disallowed on the reason that 4 trademarks have been included in the block of assets are not put to use - It is not the case of the AO that the assets were not put to use at all. The contention of the ld.DR is that only the brand ‘Jealous’ was put to use in the asst. year under consideration, as such, only this brand is entitled for depreciation and not other 3 brands. All these 4 brands falling under one block of assets and even one of the brads is put to use, it is not possible to restrict the depreciation on the said brand only by stating that a portion of block assets only has been put to use. In our opinion, in relation to block of assets, it is not possible to segregate the each trademark from the block for the purposes of granting depreciation and thereby restricting the claim thereof. Once it is found that the assets are used for business purpose out of particular block, it is not necessary that all the item falling within that block have to be simultaneously used for being entitled to depreciation . In view of this, we are of the opinion that lower authorities are not justified in rejecting the claim of depreciation on the block of these assets and the assessee to be granted depreciation at the prescribed rate for this block of assets. Accordingly, we allow this ground of appeal of the assessee.
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