The Hindu Business Line : Depreciation on intangible assets

Our company paid Rs 30 lakh to our competitor as non-compete fee as per the agreement. We want to claim depreciation on the amount paid by treating it as commercial asset though intangible. Is it possible?

Credit under Section 115JAA and interest under Section 234B: Our company, eligible for tax credit under Section 115 JAA, computed interest under Sections 234B and 234C after deducting the tax credit available. The assessing officer (AO) is of the opinion that it should be the other way around, that is, interest under Sections 234B and 234C have to be added to the tax and only on the resultant the tax credit under Section 115JAA is to be reduced. Who is correct?

Allowance of expenses under Section 37 when not allowed under Section 30: Our company incurred Rs 3 lakh towards repairs to rental premises and Rs 50,000 on plumbing work. The entire expenditure was claimed as deduction which was negatived by the AO.

Even if the expenditure is not deductible under Section 30, is it not deductible under Section 37, being the residuary provision?

Whether change in constitution takes place on minor attaining majority and becoming a full-fledged partner: Our firm consisting of three partners and a minor was constituted five years ago. The minor attained majority in March 2007. We have not executed a new partnership deed to admit the minor as a full-fledged partner. For the assessment 2008-09, the AO wants to deny us the benefit of firm status for the reason that a deed effecting the change in constitution was not executed nor filed as per Section 184. Is the AO correct?

Taxability of interest accrued but not due: Our company has certain securities for which interest accrued and became due on June 30 and December 31 of every year.

We admitted the interest as income when it accrued and became due. At the time of assessment, the AO added interest for the period from January 1 to March 31 by stating that as per the accrual system of accounting such interest which has accrued is taxable. Is he correct?

Taxability of let out residential building: A residential building owned by our company and occupied by the director for four months during the year was later let out for residential purposes.

Since the property was let out on the valuation date, we are of the opinion that it is not liable for wealth tax. Is our contention valid in law?

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