Section 32- Depreciation allowable on payment made to acquire business or commercial rights

Brief About the case  The Assessee acquired the shares of M/s Siemens Telecom Ltd (‘STL’) on 29.09.2000. Beside the payment consideration for acquisition, the assessee also paid Rs.9 crore specifically for the “marketing, customer support, distribution and associate setups” of STL. Treating the said sum in the nature of “Goodwill”, the assessee claimed depreciation which was also allowed in the previous assessment years. While considering the return of A.Y. 2006-07, A.O. re-examined the agreement between STL and the assessee company and depreciation claim of Rs.53,59,256/- was re...