Purchase of business rights covered within meaning of ‘intangible asset’ is eligible for depreciation

CIT Vs Daikin Shri Ram Aircon Pvt Ltd (Delhi High Court)

Delhi High Court held that the consideration for the purchase of marketing and business rights for a period of twenty years is capital in nature and constitutes an intangible asset within the meaning of section 32(1)(ii) of the Income Tax Act and therefore eligible to claim depreciation.

Facts-

The Respondent, Assessee, entered into a Business Purchase Agreement with M/s Usha Inter

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