sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« From the Courts »
 M/s. Guajarat Guardian Ltd, 4-7/C, DDA Shopping Centre, New Friends Colony, New Delhi vs DCIT, Circle-12(1), (Now Circle-10(2), CR Building, IP Estate, New Delhi
 ACIT, Circle 1 Noida 201 301 vs M/s Jubilant Enpro P Ltd. Plot No.1-A Sector 16 A Noida 201 301
 Priyatam Plaschem Pvt. Ltd vs. ITO (ITAT Delhi)
 Income Tax Appellate Tribunal, Mumbai Benches, Mumbai Consolidated Cause List Of Saj Ma/ Pronouncement For Friday 17.08.20 18
  PCIT vs. Associated Cables Pvt. Ltd (Bombay High Court)
 Sh. Ram Niwas H.No.A-26, Sanjay Gram Opp. Sector 14 Gurgaon 122 002, Haryana vs ITO, Ward 2(1) Gurgaon
 PCIT vs. Associated Cables Pvt. Ltd (Bombay High Court)
 Sudha Garg R-16/369, Vasundara Ghaziabad vs ITO Ward-2(3) Ghaziabad
 ACIT, Circle-61(1), New Delhi vs Urbane The Design Workshop, 5, South Appts MIS Flats, 1st Floor, Sri Aurobindo Marg,
 Loesche India Pvt. Ltd., M-38/1, Intl. Business Centre, Middle Circle, Connaught Place, New Delhi. vs Addl. CIT, Range-15,New Delhi.
 M/s. Mckinsey Knowledge Centre India Pvt. Ltd. vs. Pr. Commissioner Of Income Tax, Delhi 6

Areva T&D India Ltd vs. DCIT (Delhi High Court)
April, 04th 2012
S. 32(1)(ii): Business information, contracts, records etc are intangible assets & eligible for depreciation
 
The assessee, vide slump sale agreement, acquired a transmission and distribution business as a going concern for a lump sum consideration of Rs.44.7 crores. The net tangible assets were valued at Rs.28.11 crores and the balance Rs. 16.58 crores was allocated by the transferee towards acquisition of bundle of business and commercial rights being business information; business records; contracts; employees etc, compendiously termed as goodwill. The assessee claimed that the said business and commercial rights were an intangible asset and eligible for depreciation u/s 32(1)(ii). The assessees claim was rejected by the AO, CIT(A) & Tribunal on the ground that depreciation was not allowable on goodwill. On appeal by the assessee, HELD reversing the lower authorities:

S. 32(1)(ii) allows depreciation on intangible assets which are defined to mean know-how, patents, copyrights, trade marks, licences, franchises or any other business or commercial rights of similar nature. Applying the principle of ejusdem generis, the expression business or commercial rights of similar nature need not answer the description of knowhow, patents, trademarks, licenses or franchises but must be of similar nature as the specified assets. The specified intangible assets are not of the same kind and are clearly distinct from one another. The nature of business or commercial rights cannot be restricted to only the aforesaid six categories of assets but can be of the same genus in which all the aforesaid six assets fall and form part of the tool of trade of an assessee facilitating smooth carrying on of the business. The intangible assets, viz., business claims; business information; business records; contracts; employees; and knowhow, are all assets, which are invaluable and result in carrying on the transmission and distribution business by the assessee without any interruption. These intangible assets are comparable to a license to carry out the existing transmission and distribution business of the transferor. In the absence of the aforesaid intangible assets, the assessee would have had to commence business from scratch and go through the gestation period whereas by acquiring the aforesaid business rights along with the tangible assets, the assessee got an up and running business. Accordingly, the intangible assets acquired under slump sale agreement were in the nature of business or commercial rights of similar nature and eligible for depreciation u/s 32(1)(ii) (Techno Shares 327 ITR 323 (SC) followed) (Q whether goodwill per se is eligible for depreciation u/s 32(1)(ii) left open).
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions