The Tribunal allowed the assessee's claim for depreciation on...

The Tribunal allowed the assessee's claim for depreciation on goodwill arising from amalgamation u/s 32(1)(ii), following the Supreme Court's decision in Smifs Securities Ltd. It held that once goodwill is recognized per Accounting Standard-14, depreciation is allowable. The sixth proviso to Section 32(1) was not applicable as the amalgamating company did not claim depreciation on goodwill. Provisions of Explanation 7 to Section 43(1), Section 49(1)(iii)(e), and Section 55(2)(a)(ii) were held inapplicable. The Tribunal also allowed depreciation on customer relationships and distribution network acquired through amalgamation, being intangible assets valued by an independent valuer. However, it dismissed the claim for refund of excess tax paid on dividends distributed to non-resident shareholders, following the Special Bench decision in Total Oil India Private Ltd.