INCOME TAX ACT, 1961

Section 32

Depreciation - Allowability - epreciation on the intangible asset viz., goodwill/customer list whether allowable -

Assessee was engaged in the business of providing pest control services. It claimed depreciation on customer list and goodwill at the rate of 25% treating them as an intangible asset. AO alleged that purchase price paid was nothing but non-compete fee paid to the transferor by the assessee and was just renamed as customer right/goodwill and denied the depreciation claim to assessee. Held: As decided in assessee's own case for assessment years 2010-11 and 2014-15, customer list was to be treated as falling within the expression “business or commercial rights of similar nature”, as contained in section 32(1)(ii), by relying upon the decision of Areva T & D India Ltd. Assessee was entitled to the depreciation on the intangible asset viz., goodwill/customer list as claimed.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14

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