Business information instrumental in carrying on newly acquired business and expense on such info eligible for depreciation

Brief of the case:

The Hon’ble Himachal Pradesh High Court in the case of RFCL Limited vs. Commissioner of Income Tax held that the important business information acquired by assessee in the course of business purchase are intangible assets as the same are in the nature of ‘’business or commercial rights of similar nature’’ on which the assessee is eligible to claim depreciation.
Facts of the case:

• The assessee company purchased Animal Health Care and Diagnostics Business divisions of Ranbaxy Laboratories Ltd. Along with acquisition of other assets , it also acquired list of Stockist Agreements, Distribution Agreements, Lease Agreements and also Distribution and Marketing Agreements, along with list of licenses and permissions and list of various products, the name license and also the manufacturing know-how etc., along with list of employees are assets

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