Daily Archives: June 1, 2012

DCIT v WEIZMANN FOREX LTD ITA No.3571/Mum/2011 (Mum ITAT) Assessee Company is engaged in the business of dealing in foreign exchange, money transfer and wind power generation. During the year under consideration, the assessee company had acquired franchise from AFL Pvt Ltd (ALF) – filed its ROI claiming depreciation on franchise rights. During the course of assessment proceedings the AO took a view that depreciation was not available on such things – Aggrieved with the order of the AO assessee contended the issue before the CIT(A) who after analyzing the agreement of franchise allowed the appeal of the assessee. Held that:  

Wear & tear is not an essential condition for depreciation on intangible assets