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Case Law Details

Case Name : Hindustan Coca-Cola Beverages Pvt. Ltd. Vs DCIT (ITAT Delhi)
Appeal Number : ITA No. 6605/Del/2014
Date of Judgement/Order : 12/04/2023
Related Assessment Year : 2004-05
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Hindustan Coca-Cola Beverages Pvt. Ltd. Vs DCIT (ITAT Delhi)

ITAT Delhi held that if in the initial year of claim the depreciation, is allowed, the claim cannot be disturbed in the subsequent years.

Facts- The issue relates to disallowance of depreciation claimed on acquisition of distributors list it comes up that assessee had appointed M/s. S.R.Mineral Water Pvt. Ltd. as its distributor in Chennai which was earlier distributor of competing product from which it had built a large customer base in Chennai. Assessee had forgone a substantial amount due from S. R Mineral, which was by way of deposits collected on behalf of assessee. This amount as forgone by the assessee was considered as consideration for acquisition of rights to access to the customer data base available with the said distributor. Assessee considered it as a capital expenditure towards acquisition of intangible asset being customer data bank and claimed depreciation.

Conclusion- Held that the settled proposition of law that if in the initial year of claim the depreciation, is allowed, the claim cannot be disturbed in the subsequent years. Thus, grounds arising out of this issue in the respective assessment years are allowed in favour of the assessee.

FULL TEXT OF THE ORDER OF ITAT DELHI

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