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2021 (9) TMI 957 - AT - Income TaxDisallowance of depreciation on trademark - Addition for the reason that the Deed of Assignment of Trademark and Copyright entered into by the assessee with M/s. Univercell Telecommunications India Private Limited is an invalid agreement - HELD THAT:- As decided in own case [2020 (4) TMI 742 - ITAT CHENNAI] law is settled to the extent that it is outside the domain of the ld. 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. Furthermore, it is an settled principle of law that intangible assets such as trademark, goodwill are also qualifies for depreciation at prescribed rates. We do not concur with the views of the lower authorities in disallowing the claim for depreciation on trademark.- Decided in favour of assessee. Disallowance of advertisement expenditure & professional charges - payment made towards Brand Ambassadors for promotion of the brand - HELD THAT:- As decided in own case [2020 (4) TMI 742 - ITAT CHENNAI] it is settled principle of law that the Assessing Officer is not expected to question the necessity of the expenditure. The brand expenditure is nothing but business promotion expenditure which is Revenue in nature and which is clearly allowed as deduction. - Decided in favour of assessee.
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