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2019 (10) TMI 828 - AT - Income TaxGenuinity of transaction of purchase of trademark - allowable transaction - claim for depreciation on trademark - HELD THAT:- The law is settled to the extent that it is outside the domain of the AO to question the necessity of incurring an expenditure. Thus the reasons assigned by the Assessing Officer that the transaction for purchase of trademark are not genuine cannot stand test of the law. It is an settled principle of law that intangible assets such as trademark, goodwill are also qualifies for depreciation at prescribed rates. Therefore we do not concur with the views of the lower authorities in disallowing the claim for depreciation on trademark. Accordingly, we set aside the orders of the lower authorities and allow the grounds of appeal filed by the assessee.
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