Treaty benefit, goodwill depreciation and hedging costs: export commission disallowed, while key business deductions and depreciation claims succeeded...
Undisclosed foreign asset classification requires an unexplained source; unrebutted affidavits and corroborative evidence defeated the Black Money Act...
Depreciation on non-compete fees arising from acquisition of a proprietary business through a slump sale is unsustainable where such fees are allowable only as revenue expenditure. In contrast, goodwill created when slump-sale consideration exceeds the net value of acquired assets may qualify for depreciation where it was not an existing depreciable asset or block transferred from the predecessor. Successor-depreciation restrictions do not apply to goodwill absent from the predecessor's books, and the later statutory exclusion of business goodwill applies prospectively from 1 April 2021. Accordingly, depreciation on non-compete fees was rejected, while depreciation on the goodwill was allowed.
Depreciation on non-compete fees arising from acquisition of a proprietary business through a slump sale is unsustainable where such fees are allowable only as revenue expenditure. In contrast, goodwill created when slump-sale consideration exceeds the net value of acquired assets may qualify for depreciation where it was not an existing depreciable asset or block transferred from the predecessor. Successor-depreciation restrictions do not apply to goodwill absent from the predecessor's books, and the later statutory exclusion of business goodwill applies prospectively from 1 April 2021. Accordingly, depreciation on non-compete fees was rejected, while depreciation on the goodwill was allowed.
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