True basis of depreciation allowance is the character of the asset not the description of the same

SUMMARY OF CASE LAW Even if an asset is described as goodwill but it fits in the description of section 32(1)(ii), depreciation is to be granted on the same; the true basis of depreciation allowance is the character of the asset and not it’s description. RELEVANT PARAGRAPH 5. We find that, as noted by the learned Commissioner in page 7 in the impugned order, the audit report has made following disclosure below the computation of depreciation on goodwill: “Goodwill of the company comprises of (a) payment for the marketing and trading reputation, trading style and name, marketing and dis...