The question before the High Court was whether *FSI purchased was eligible for depreciation as an intangible asset.  The Court allowing the reasoning of the ITAT held that the view taken by the Tribunal is a reasonable one, having regard to the provisions contained in sections 32 (1)(ii) and 43(6)(c) of the Act. That apart, the amount spent by the assessee would add to the value of the existing building as additional FSI would be available to the assessee; the amount spent was for the purpose of business and was of enduring nature; since it related to the building block of the asset, the overall cost of the building block would increase

by this amount and thus allowed depreciation by adding FSI payment to the building block of asset and allow depreciation as per law i.e. on the rate applicable to the building which is 10% and not 25%.

(ITA No 1734 of  2017 dt .21-9-2020  ) (AY. 2006 -07)