HC : Allows IPR depreciation to trading co.despite not ‘put-to-use’ for manufacturing activities

Delhi HC dismisses Revenue’s appeal, allows depreciation on the intellectual property rights (IPR) acquired and purchased by assessee co. from Monsanto India Limited during AY 2010-11; HC notes that the IPRs purchased by assessee included trademarks, which were used for the purpose of its trading business, in advertising/sales promotion/marketing; Rejects Revenue’s stand that depreciation was not allowable as the capital asset in form of intellectual property rights was not put to use for manufacturing activities; HC remarks that “This cannot be a ground and reason to hold that the assessee had not ‘put to use’ the intellectual property rights assets in the year in question.”; HC clarifies that “Mere purchase of the products, from third party or the fact that assessee was not engaged in manufacturing activity, would not make any difference.”, moreover observes that Revenue did not dispute cost of acquisition, ownership and nature of IPRs acquired.:HC