ITAT Mumbai: Depreciation on Trademark Allowed-AO Cannot Revisit Claim in Subsequent Years

DCIT Vs Transworld Furtichem Private Limited (ITAT Mumbai) The Mumbai ITAT held that once depreciation on an intangible asset such as a trademark has been allowed in the first year after due scrutiny, the Assessing Officer cannot disallow the same in subsequent years without any change in facts. In this case, the assessee acquired a trademark pursuant to an amalgamation approved by the NCLT and claimed depreciation under Section 32. The claim was examined and accepted in the first year (AY 2016–17). However, in subsequent years, the AO disallowed depreciation alleging that the trademark was ...