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2018 (8) TMI 346 - DELHI HIGH COURTDepreciation on intellectual property rights acquired and purchased by the assessee from Monsanto India Limited - “put to use” - Held that:- The intellectual property rights purchased by the assessee included trademarks ‘Lasso’, ‘Machete’ and ‘Fast Mix’, rights to reference and use of registration data in support of product registration, benefits of business contracts, business information, business intellectual property right, trademarks and rights against third parties. It is an accepted and admitted position that the products sold by the respondent-assessee had borne the trademarks ‘Lasso’, ‘Machete’ and ‘Fast Mix’. Substantial advertisement and sales promotion expenditure was incurred. Use of intellectual property rights for sales and marketing was not questioned and commented upon in the assessment order. Depreciation was disallowed as the asset had not been put to use for manufacturing activities. This cannot be a ground and reason to hold that the assessee had not “put to use” the intellectual property rights assets in the year in question. Mere purchase of the products, from third party or the fact that assessee was not engaged in manufacturing activity, would not make any difference.
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