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2012 (9) TMI 975 - AT - Income TaxAllowability of depreciation u/s 32 on the commercial right of ‘marketing network’ - Held that:- Assessee acquired the marketing network of Jyothi Industries by which the assessee got access to the marketing network of Jyothi Industries consisting of representative, infrastructure, customer lists, marketing strategies etc. Considering the commonality of the facts of the issue, assessee’s acquisition of distribution network is eligible for depreciation u/s 32 of the Act and therefore, the issue under consideration stands covered in favour of the assessee. Allowability of depreciation on the goodwill - Held that:- It is a settled position that the ‘goodwill’ is an intangible asset entitled for the depreciation. Considering the above said nature of the issue, we are of the opinion that the assessee is entitled for depreciation u/s 32 in respect of the goodwill acquired by the assessee vide the agreement dated 1.3.2000 placed at page 39 of the paper book. Accordingly, ground no. 2 is allowed.
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