Answers On Topic: Equity shares
  Claiming depreciation on underlying asset (mining lease) held by Company
Dear Sir, A company named ABC has bought 100% of the equity capital of a private limited company named XYZ. XYZ has no assets or liabilities other than a mining lease allotted by the Government. The mining lease is a valuable asset as it gives XYZ exclusive and monopoly rights. The agreement between ABC and the sellers of the shares of XYZ makes it clear that the only reason ABC has bought the shares is to acquire control over the mining lease. Can ABC claim that the amount paid for acquiring the shares should be treated as amount paid for…


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