Assessee's Appeal on Goodwill & Depreciation Adjustments Partially Allowed

The assessee's appeal regarding the deduction for goodwill amortization was partly allowed, with the Tribunal remitting the issue to the Assessing Officer to reconsider depreciation on goodwill. In the Revenue's appeal, depreciation on the amount paid for transfer of leasehold rights was adjusted, allowing 25% depreciation on goodwill and 10% on furniture and fittings. Both appeals were partly allowed, with decisions issued on June 28, 2013.

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Issues:
1. Appeal by the assessee against the Commissioner of Income-tax (Appeals) for the assessment year 2008-09.
2. Appeal by the Revenue against the Commissioner of Income-tax (Appeals) for the assessment year 2009-10.

Appeal I. T. A. No. 37/Hyd/12 - Appeal by the assessee:
The assessee, a company engaged in retail trading, claimed deduction for goodwill amortized as a business expense. The Assessing Officer disallowed the claim, stating goodwill is not recognized as an intangible asset. The Commissioner of Income-tax (Appeals) upheld the disallowance due to lack of documentary evidence. The Tribunal referred to precedents where goodwill was considered an intangible asset eligible for depreciation. The issue was remitted to the Assessing Officer to reconsider depreciation on goodwill.

Appeal I. T. A. No. 1482/Hyd/12 - Appeal by the Revenue:
The Commissioner of Income-tax (Appeals) allowed depreciation on the entire amount of &8377; 75 lakhs paid for transfer of leasehold rights, including plant and machinery, furniture, fittings, and goodwill. The Revenue appealed, arguing that 10% depreciation was wrongly allowed. The Tribunal directed the Assessing Officer to allow 25% depreciation on goodwill as an intangible asset and 10% depreciation on furniture and fittings.

In conclusion, the appeal I. T. A. No. 37/Hyd/12 was partly allowed for statistical purposes, and the appeal I. T. A. No. 1482/Hyd/12 was also partly allowed. Both appeals were decided on June 28, 2013.

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