Expenditure incurred in acquisition of intangible asset is to be treated as revenue expenditure
Last updated: 15 December 2011
Court :
Income Tax Appellate Tribunal
Brief :
On the facts and circumstances of the case, the learned CIT(A) ought not have deleted the addition of Rs. 4,49,95,728 representing expenses for acquisition of rights
The learned CIT(A) ought to have appreciate the fact that the provisions of sec. 32 amended by F.A. No. 2) Act, 1988 w.e.f. 1.4.1999 where the expenditure incurred on acquisition of ownership in intangible assets like, know-how, patents, copy rights, trademarks, licences etc., which are acquired on after 1.4.1998 are deemed to be in the nature of capital expenditure on which depreciation is allowable.
Citation :
DCIT Appellant Vs. M/s. Aditya Music (I) Respondent
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CS Bijoy
Published in Income Tax
Views : 1363
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