https://www.taxtmi.com/caselaws?id=356674 Liabilities assumed on acquisition of an undertaking as a going concern, including gratuity, provident fund, bonus and other accrued statutory dues of the vendor, may form part of the composite acquisition cost, but they do not by themselves become depreciable assets. Depreciation under section 32 is confined to specified asset classes such as buildings, machinery, plant, furniture and eligible intangibles, so an assumed vendor liability cannot be depreciated merely because it was capitalised in the buyer's books. On that basis, the claim for depreciation on the transferred employee and statutory liabilities was held unsustainable, and the disallowance was not to be restored. en-us Wed, 07 Mar 2018 00:00:00 +0530 Fri, 09 Mar 2018 13:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=356674 Liabilities assumed on acquisition of an undertaking as a going concern, including gratuity, provident fund, bonus and other accrued statutory dues of the vendor, may form part of the composite acquisition cost, but they do not by themselves become depreciable assets. Depreciation under section 32 is confined to specified asset classes such as buildings, machinery, plant, furniture and eligible intangibles, so an assumed vendor liability cannot be depreciated merely because it was capitalised in the buyer's books. On that basis, the claim for depreciation on the transferred employee and statutory liabilities was held unsustainable, and the disallowance was not to be restored. Case-Laws Income Tax Wed, 07 Mar 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=356674