Delhi HC sets aside TPO’s Order on ‘FABINDIA’ Trademark Depreciation, Directs AO to Reassess Depreciation Claim

The Delhi High Court has set aside the Transfer Pricing Officer’s (TPO) order concerning Fabindia's depreciation claim related to its trademark. The court directed the Assessing Officer (AO) to reassess the depreciation claim, stating that the TPO’s order was not based on sufficient evidence. The ruling highlights the importance of proper documentation and transparency in determining the depreciation claims for intangible assets like trademarks. Fabindia had claimed depreciation on its trademark value, but the TPO had initially rejected the claim. The Delhi High Court’s decision emphasizes that such claims should be reassessed carefully, taking into account the legal and financial aspects.