25% Depreciation allowable on License to run container trains on Indian Rail Network

M/s Container Corporation of India Ltd. Vs DCIT (ITAT Delhi)

The assessee Corporation made a payment of RS.50 crore to Ministry of Railways, Government of India in FY 2005-06 as non-refundable registration fee for 20 years towards license for running container trains on Indian Railways Network. According to part B of New Appendix 1 to Income Tax Rules, 1962, the Licenses or any other business or commercial rights of similar nature are grouped under intangible assets and the depreciation at the rate of 25% is allowable on cos

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