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2016 (4) TMI 587 - AT - Income TaxDisallowance of depreciation on acquisition of trade mark - Held that:- CIT(A) has raised an issue about the trademark not being actually used by the assessee is difficult to understand, much less approve, his inference. When the business is transferred on a going concern basis and the trademark is an integral part of the business transferred, and the assessee has carried on the business as such, there is no reason to even suspect, much less infer, that the trademark was not in use. In any case, it was not the case of the Assessing Officer nor was the assessee put to notice in this respect even in the appellate proceedings. We are unable to see any legally sustainable merits on this objection either. There has also not been any dispute with regard to valuation of the trademark and the valuation is supported by a valuer’s report. Thus we are of the considered view that the assessee was indeed eligible for depreciation in respect of the intangible asset by way of trademark. The Assessing Officer is, therefore, directed to grant the depreciation on the trademark. - Decided in favour of assessee.
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