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2017 (12) TMI 1585 - ITAT NEW DELHIDepreciation on intangible assets of business intellectual property rights - assessee engaged in trading activity - Held that:- The company is admittedly using this brand for the past year also and the depreciation for the earlier assessment year has already been allowed to the assessee on similar facts. These facts have not been disputed by the ld. Departmental Representative or by the Assessing Officer. Further, the Ld. CIT (A) has also mentioned that no remedial action has been taken by the Ld. Assessing Officer for assessment year 2009-10, in which the original depreciation was allowed by the Ld. Assessing Officer. The Ld. CIT(A) allowed the claim of the assessee holding that assessee is engaged in the trading activity of such products which have definitely taken place during the year under consideration, as well as in the immediately preceding previous year. The business intellectual property rights were in hand with the appellant for manufacturing the products and also the appellant has used it for the trading purposes under the seal of its own by using the brand name of Monsanto. No infirmity in the order of the Ld. CIT (A) and none has been pointed out by the Ld. departmental representative. It could not be controverted by the revenue that the assessee has used these brands for the purpose of its trading business. Furthermore, no provision could be shown before us that if the assets have been used for the purpose of the trading business depreciation on intellectual property cannot be allowed. In view of this we uphold the findings of the Ld. First appellate Authority in deleting the depreciation disallowance made by the Ld. Assessing Officer on business intellectual property rights amounting to ₹ 34437935/-. In the result, the solitary ground raised by the revenue is dismissed.
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