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TMI Blog2017 (12) TMI 1585X X X X Extracts X X X X X X X X Extracts X X X X ..... the disallowance of Rs. 34437935/- made by the AO on account of depreciation on business intellectual property rights disallowed by the Ld. Assessing Officer under the pretext that assessee has not used these assets towards manufacturing activities. 2. The solitary issue involved in this appeal is whether the depreciation on intangible assets of business intellectual property rights is allowable to the assessee or not. 3. Facts of the case shows that assessee is a company which is wholly owned subsidiary of Sinochem International (overseas) Pte Ltd, Singapore. It is engaged in manufacturing through job work and trading in agrochemical i.e. pesticides etc. Assessee filed its return of income on 30/9/2010 declaring loss of Rs. 40844572/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tisfied. 7. The Ld. authorised representative vehemently stated that the assets have been used by the assessee for the purpose of the business of the assessee. Therefore, the conditions specified Under Section 32(1) has been satisfied. It was further stated that the intangible assets acquired was in the form of know-how, patents, copyrights, trademark, licenses, franchisees or any other business or under any other commercial right of similar nature as prescribed for depreciation allowance Under Section 32 of the Income Tax Act. Since the appellant is using the patent and trademark obtained from Monsanto India Ltd, it was an intangible asset on which depreciation at the rate of 30% was allowable. It was further stated by him that the compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee and therefore the claim of the depreciation of the assessee is allowable. 8. We have carefully considered the rival contention as well as perused the orders of the lower authorities. Admittedly during the year the appellant has claimed depreciation on business intellectual property right amounting to Rs. 56614759/- as acquired from Monsanto India Ltd for Rs. 345506220/-. The company is admittedly using this brand for the past year also and the depreciation for the earlier assessment year has already been allowed to the assessee on similar facts. These facts have not been disputed by the ld. Departmental Representative or by the Assessing Officer. Further, the Ld. CIT (A) has also mentioned that no remedial action has been taken ..... X X X X Extracts X X X X X X X X Extracts X X X X
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