Case Law Details
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 cost of the same. As the registration fees paid for licence for running the container trains is covered under definition of intangible assets, the depreciation is allowable at the rate of 25%.
FULL TEXT OF THE ITAT JUDGMENT
The present appeals have been filed by assessee against the order dated 21.07.2014 of the Ld. Commissioner of Income Tax (Appeals)-VI, New Delhi pertaining to the Assessment Years (A.Y.) 2007-08 and 2008-09 on the following common grounds.
ITA No. 5098/Del/2014
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