Tribunal allows depreciation claim on goodwill after revised return filed within time frame.

The Tribunal allowed the appellant's claim for depreciation on goodwill in the revised return, filed within the specified time frame. The claim was upheld despite not being quantified in the tax audit report, following the Supreme Court's decision. The Tribunal emphasized the appellant's right to revise the return under Section 139(5) and set aside the Commissioner's order, ruling in favor of the appellant.

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Issues:
Claim of depreciation on goodwill in revised return filed beyond due date.

Analysis:
The appellant's appeal was against the order of the Commissioner of Income Tax (Appeals) regarding the claim of depreciation on goodwill amounting to Rs. 23,93,31,090 for the assessment year 2011-12. The original return of income was filed on 29.11.2011, revised on 15.03.2013, and the assessment order passed on 09.03.2015 restricted the total loss to Rs. 35,69,59,530. The Assessing Officer disallowed the depreciation claimed, citing violation of Section 80 and Section 139(1) due to filing the revised return beyond the due date. The issue revolved around the claim of depreciation on goodwill and the submission of the revised return.

The Assessing Officer disallowed the depreciation claim as it was filed beyond the due date specified in Section 139(1) and Section 80 of the Income Tax Act. The claim was also not specified in the tax audit report, leading to the disallowance. The Commissioner of Income Tax (Appeals) upheld the disallowance, emphasizing the need for condonation under Section 119(2)(b) for late filing. The appellant's eligibility to claim depreciation on goodwill was denied due to the absence of a condonation application.

Upon appeal, the Tribunal noted that the revised return was filed within the due date specified in Section 139(1) and 139(5). The Tribunal highlighted the appellant's right to revise the return under Section 139(5) on discovering any omission or wrong statement. Citing a relevant High Court decision, the Tribunal emphasized that the claim in the revised return cannot be denied solely on the ground of not being in the original return. The Tribunal found no error in the appellant's claim and set aside the Commissioner's order, deciding in favor of the appellant.

The Tribunal concluded that the appellant's claim for depreciation on goodwill in the revised return, filed within the specified time frame, was valid. The non-quantification of the depreciation amount in the tax audit report did not invalidate the claim supported by the Supreme Court's decision. The Tribunal overturned the Commissioner's decision, emphasizing the appellant's right to revise the return and allowing the appeal in favor of the assessee.

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