Government authorisations (or approvals) are not eligible for depreciation
The Delhi Bench of the Income-tax Appellate Tribunal held that government authorisations or approvals are not licenses or rights having a business or commercial nature that, in turn, could be transferred to the taxpayer. Therefore, depreciation is not allowed on the value assigned such government authorisations. The tribunal also held that the taxpayer could not allocate the value of such government authorisations towards goodwill. The case is: Pitney Bowes India (P) Ltd. Read a June 2017 report [PDF 329 KB] of KPMG