Dismissing the appeal of the assessee the Tribunal held that , onetime consolidated fees paid to its holding company, GRM, for use of trademark is held to be capital in nature ,an enduring benefit and was applicable till assessee ceased to be subsidiary of GRM however one time consolidated amount being in nature of intangible asset, depreciation is allowable .( AY.2010-11)
GMR Airport Developers Ltd. v. ITO (2018) 171 ITD 595 (Hyd) (Trib.)
S.37(1):Business expenditure- Capital or revenue- Depreciation-One time consolidated fee paid to holding company –Held to be capital in nature – Depreciation is allowable . [ S.32(1)(ii) ]