Assessee is engaged in business of wholesale trading and distribution of mobile phones and accessories. The assessee had acquired trademark from \u00a0\u00a0Univercell Telecommunications India ( P) \u00a0\u00a0Ltd. \u00a0and claimed depreciation on said intangible asset. Genuineness of agreement was doubted on ground that agreement was on post dated stamp paper . AO also questioned necessity of procuring trademark and again giving back to same party for a consideration of 0.01 per cent of turnover . The AO\u00a0 held that that transaction was mala fide and disallowed claim for depreciation .\u00a0CIT(A) confirmed the order of the AO. Tribunal held that as regards first objection, fact that agreement was entered on post dated stamp paper was immaterial and not germane to decide whether or not transaction was genuine .\u00a0 As regards as commercial expediency was concerned, it was not open to AO to question necessity of incurring an expenditure as he could not step into shoes of assessee to determine as to how business activities were to be conducted . Accordingly\u00a0the\u00a0 order \u00a0passed by AO denying assessee’s claim for depreciation was set aside .(AY. 2007 -08 to 2009 -10)<\/p>\n","protected":false},"excerpt":{"rendered":"
S.32 : Depreciation- Trade mark – Depreciation cannot be rejected on ground that agreement to acquire trademark was entered into on post dated stamp paper. [ S.147 ,148 ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8355","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2aL","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=8355"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8355\/revisions"}],"predecessor-version":[{"id":8356,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8355\/revisions\/8356"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=8355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=8355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=8355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}