2011 (7) TMI 1172 - AT - Income Tax

Assessee wins on depreciation, loses on tax credit. Tribunal decision based on precedent.

The Tribunal partly allowed the assessee's appeal, deciding in favor of the assessee on the depreciation disallowance issue based on the precedent set by ... - Issues involved: Disallowance of claim of depreciation on non-competing fees and marketing network rights, credit of tax payment and interest under S.234B of the Act.Dispute Resolution Panel's Order: The appeal by the assessee for the assessment year 2006-07 is directed against the order of the Dispute Resolution Panel.Depreciation Disallowance Issue: The only effective ground of appeal of the assessee was disallowance of claim of depreciation on non-competing fees and marketing network rights. The assessee argued that the payment towards these assets falls within the ambit of 'intangible assets' as per section 32(1)(ii) of the Act, citing a previous Tribunal decision in their favor for AY 2000-01. The counsel for the assessee contended that the issue is covered in favor of the assessee based on the previous Tribunal decision, which the Departmental Representative did not contest. The Tribunal found that the issue was identical to the previous case and decided in favor of the assessee, allowing depreciation on the intangible assets.Tax Payment and Interest Issue: No arguments were presented on the issue of credit of tax payment and interest under S.234B of the Act raised by the assessee. Consequently, this ground of appeal was rejected.Conclusion: The Tribunal partly allowed the assessee's appeal, deciding in favor of the assessee on the depreciation disallowance issue based on the precedent set by a previous Tribunal decision. The decision was pronounced in court on 8.7.2011.