2021 (9) TMI 1533 - SCH - Income Tax

Depreciation on intangibles - trademarks owned wholly or partly by the assessee - assessee succeeded to the business of the partnership firm, which had trademarks registered in its name - As decided by HC 2020 (10) TMI 424 - KARNATAKA HIGH COURT assessee u/s 32(1) was entitled for depreciation with reference to actual cost incurred by it with reference to intangible assets - 5th proviso in any case will apply only in the year of succession and not in subsequent years and also in respect of overall quantum of depreciation in the year of succession and Tribunal committed an error of law in upholding the order of Commissioner of Income Tax (Appeals) in invoking Explanation 3 to Section 43(1) - HELD THAT - Issue notice, returnable on 08.11.2021. Dasti service, in addition, is permitted.In the meantime, the impugned judgment and orders passed by the High Court are stayed.

Summary

The Supreme Court issued an order to issue notice returnable on 08.11.2021, allowed Dasti service, and stayed the impugned judgment and orders passed by the High Court. No representation from the respondent was noted.