New composition scheme of Tax of 5% under Delhi VAT

A new composition scheme has been notified under the Delhi VAT Act Vide Notification No. F.3(29)/Fin(Rev-I) 2015-2016/dsvi/93 dated 18.3.2016 with effect from 1.4.2016 for every registered dealer -

(i)		whose turnover during the preceding year as well as expected turnover during current year does not exceed Rs.50 lacs; and
(ii)		who is not making any sales other than that of ready to eat foods and non-alcoholic beverages including cooked food, snacks, sweets, savouries, juices, aerated drinks, tea & coffee etc. and served in or catered indoors or outdoors by hotels, restaurants, sweet-stalls, sweet shops, clubs, caterers & any other eating houses.

Such dealer may elect for the new composition scheme and pay tax @ 5% of the entire turnover. The electing registered dealer shall comply with the conditions and restrictions specified in this notification, such as, -

Depreciation should be allowed on trademark, even though it may not be registered in name of assessee

Facts

a)  Assessee acquired business of a company including its trademark. It claimed depreciation on cost incurred on acquisition of such trademark.

b)  Assessing Officer (AO) disallowed depreciation on ground that trademark was not registered in the name of assessee.

c)  CIT(A) confirmed the order of AO. Aggrieved assessee filed the instant appeal before tribunal.