2009 (9) TMI 18 - BOMBAY HIGH COURT

Depreciation on Bombay Stock Exchange Membership Card ('BSE card') - acquired either by nomination or directly - intangible asset - section 32 - Held that - the expression 'licences' in Section 32(1)(ii) of the Act has to be construed restrictively so as to apply to licences relating to acquisition / user of intellectual property rights, because, firstly, plain reading of Section 32 of the Act makes it clear that the depreciation is restricted to the categories of intangible assets specifically enumerated therein and not to all intangible assets - expression 'licences' in section 32(1)(ii) of the Act relates to the class of intellectual property rights - expression 'licences' is used in section 32(1)(ii) of the Act to apply to licences relatable to intellectual properties only and not to all licences - under section 32 of the Act depreciation is not allowed on all capital assets but is allowable on capital assets which fall in any of the categories enumerated in the Section.- Depreciation cannot be allowed on the BSE card.