The Tax Publishers2021 TaxPub(DT) 0104 (Chen-Trib) : (2020) 084 ITR (Trib) 0401

INCOME TAX ACT, 1961

Section 32

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), and assessee was entitled to the depreciation on the intangible asset viz., goodwill/customer list as claimed.

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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