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2012 (2) TMI 551 - AT - Income TaxTreat the data base as plant and allow depreciation on it - excessive or unreasonable claim - Held that:- There is no material whatsoever to establish or even indicate that the price of ₹ 12 crores paid for the Acquired Business Database is excessive or unreasonable and only the basis of Assessing Officer's coming to the conclusion about his subjective judgment. When in Assessment year: 2002-03 valuation of Acquired Business Database has been examined by TPO while concluding that the database price adjustment for the said year and no adverse inferences have been recorded in respect of the same, there could be no good reason for the AO to deviate from the stand of the TPO and substitute his own opinion as to what should be the correct price at which Acquired Business Database should have been purchased. We are of the considered view that the CIT(A) was indeed in error in restricting the value of Acquired Business Database at ₹ 3 crores as against ₹ 12 crores paid by the assessee. To this extent, we vacate the order of the CIT(A). As per section 32(1)(ii), depreciation is allowable in respect of know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature." In view of these discussions as also bearing in mind the entirety of the case, we are of the considered opinion that the CIT(A) ought to have allowed the depreciation on the entire payment of ₹ 12 crores towards Acquired Business Database. We, therefore, reject the appeal filed by the Assessing Officer against partial relief granted by the CIT(A) and uphold the grievance of the assessee in this regard.
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