https://www.taxtmi.com/article/detailed?id=1916 Goodwill arising on acquisition is the excess paid over recorded net assets and includes unrecorded tangible and intangible business advantages; the Supreme Court has held goodwill to be an intangible asset eligible for depreciation. Allocation of purchase consideration controls tax treatment: in slump sales buyers may allocate aggregate consideration among assets (permitting depreciation on identifiable depreciable items and goodwill), but where the agreement fixes specific values for assets, assumed liabilities not included in those valuations cannot be reallocated as cost of depreciable assets, as illustrated by Hooghly Mills regarding gratuity liability. en-us Sun, 07 Oct 2012 18:07:41 +0530 Sun, 07 Oct 2012 18:07:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1916 Goodwill arising on acquisition is the excess paid over recorded net assets and includes unrecorded tangible and intangible business advantages; the Supreme Court has held goodwill to be an intangible asset eligible for depreciation. Allocation of purchase consideration controls tax treatment: in slump sales buyers may allocate aggregate consideration among assets (permitting depreciation on identifiable depreciable items and goodwill), but where the agreement fixes specific values for assets, assumed liabilities not included in those valuations cannot be reallocated as cost of depreciable assets, as illustrated by Hooghly Mills regarding gratuity liability. Articles Income Tax Sun, 07 Oct 2012 18:07:41 +0530 https://www.taxtmi.com/article/detailed?id=1916