Relief for Philips India: ITAT Upholds 30% Depreciation on Moulds Used by Exclusive Vendors

Philips India received relief from the ITAT, which upheld 30% depreciation on moulds used by exclusive vendors. The tribunal recognized that these moulds, though not directly used by Philips, were essential for manufacturing its products through third-party vendors and thus eligible for the higher depreciation rate applicable to plant and machinery. This decision is significant for companies that rely on contract manufacturing, clarifying that assets indirectly used for business operations through exclusive arrangements can still qualify for relevant tax benefits, ensuring fair tax treatment for such business models.