Transfer pricing on performance guarantees and overdue receivables deleted where warranty obligations were embedded and working capital adjustment alr...
Depreciation on goodwill arising from amalgamation was allowed, as the Tribunal followed binding precedent that goodwill is a depreciable intangible asset and held that the cited provisions regulate actual cost, written down value and capital gains treatment, but do not create any express bar on depreciation for goodwill generated by excess consideration over net assets. It further held that the accounting treatment in the books was not determinative for tax purposes, and that fresh factual allegations could not be raised for the first time in second appeal. The transfer pricing adjustment for notional interest on overdue receivables from the associated enterprise was deleted because the assessee was debt free, had no significant interest cost, and no corresponding interest was charged on payables.
Depreciation on goodwill arising from amalgamation was allowed, as the Tribunal followed binding precedent that goodwill is a depreciable intangible asset and held that the cited provisions regulate actual cost, written down value and capital gains treatment, but do not create any express bar on depreciation for goodwill generated by excess consideration over net assets. It further held that the accounting treatment in the books was not determinative for tax purposes, and that fresh factual allegations could not be raised for the first time in second appeal. The transfer pricing adjustment for notional interest on overdue receivables from the associated enterprise was deleted because the assessee was debt free, had no significant interest cost, and no corresponding interest was charged on payables.
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