Section 32(1) not applicable If assessee is only permitted to use trade mark /brand name of foreign collaborator with certain conditions

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IN THE ITAT CHENNAI BENCH ‘B’

Fenner (India) Ltd.

v.

Additional Commissioner of Income-tax

IT APPEAL NOS. 722 & 1047 (MDS.) OF 2009

[ASSESSMENT YEAR 2005-06]

APRIL 23, 2012

 

With regard to the contention of the revenue that the assessee has acquired intangible asset and therefore depreciation is allowable under section 32(1); it is opined that the provisions of section 32(1) are applicable when the assessee acquires on or after 1-4-1998 and owns wholly or partly any know-how, patents, copy rights, trade mark, etc. and uses the same for the purpose of business or profession. In this case, the assessee has not either owned wholly or partly any know-how, patents, copy rights, trade mark, etc. so as to apply the provisions of section 32(1). The assessee is only permitted to use trade mark and brand name of the foreign collaborator with certain conditions. Therefore, the provisions of section 32(1) are not applicable to the facts of the assessee’s case.