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TMI BlogAssetsX X X X Extracts X X X X X X X X Extracts X X X X ..... careful perusal of clause (b) of Explanation 3 of sub-section 1 of section 32 of the Income tax Act 1961, shows that the definition of assets, as explained in the Explanation, includes commercial rights of similar nature. Brand names certainly invest in the owner commercial rights, and therefore, will fall within the scope of intangible assets, which are amenable to deprecation under Section 32(1)(ii) of the Act. The Hon ble Madras High Court in L T Infrastructure Development Projects Limited- [ 2023 (2) TMI 32 - MADRAS HIGH COURT] , inter-alia, following the decision of the Hon ble Bombay High Court in North Karnataka Expressway Ltd (supra) held that the toll bridge and the toll roads are not tangible assets of the taxpayer in terms of Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itur a sociis, they are understood to be used in their cognate sense. They take, as it were, their colour from each other, the meaning of the more general being restricted to a sense analogous to that of the less general. 124. As per the above principle the words must take colour from words with which they are associated. 125. In Skinner Co. v. Shew and Co. (1893) 1 Ch 413 (D), it was observed: The rule of ejusdem generis i s intended to be applied where general words have been used following particular and specific words of the same nature on the established rule of construction that the Legislature presumed to use the general words in a restricted sense, that is to say, as belonging to the same genus as the particular and specific words. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to things of the same kind, as specified for interpreting the expression business or commercial rights of similar nature specified in Section 32(1)(ii) of the Act, it is seen that such rights need not answer the description of knowhow, patents, trademarks, licenses or franchises but must be of similar nature as the specified assets. On a perusal of the meaning of the categories of specific intangible assets referred in Section 32(1)(ii) of the Act preceding the term business or commercial rights of similar nature , it is seen that the aforesaid intangible assets are not of the same kind and are clearly distinct from one another. The fact that after the specified intangible assets the words business or commercial rights of similar nature ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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