Delhi High Court recently held that depreciation can be charged even on an intangible asset like goodwill, as it is a form of a commercial right and is used to carry out business. In Commissioner of Income Tax – IV v Hindustan Coca Cola Beverages Pvt Ltd the court was considering an appeal by the revenue authorities against a ruling by the Income Tax Appellate Tribunal.
The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.
