https://www.taxtmi.com/caselaws?id=446947 The ITAT Pune dismissed the assessee's appeal challenging disallowance of depreciation on goodwill claimed during acquisition of its subsidiary. The assessee held 95% equity in subsidiary RMIPL and claimed 25% depreciation under section 32(1)(ii) on goodwill arising from the acquisition. The tribunal found that RMIPL had no goodwill in its books prior to acquisition, and the purchase consideration paid was less than the net asset value acquired. Therefore, no goodwill was either acquired or purchased through excess payment. The assessee's accounting treatment of recognizing balancing figure as goodwill was held improper and not in accordance with the approved scheme or AS-14. Consequently, no depreciation claim could arise on non-existent goodwill. en-us Mon, 30 Oct 2023 00:00:00 +0530 Fri, 15 Dec 2023 10:53:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446947 The ITAT Pune dismissed the assessee's appeal challenging disallowance of depreciation on goodwill claimed during acquisition of its subsidiary. The assessee held 95% equity in subsidiary RMIPL and claimed 25% depreciation under section 32(1)(ii) on goodwill arising from the acquisition. The tribunal found that RMIPL had no goodwill in its books prior to acquisition, and the purchase consideration paid was less than the net asset value acquired. Therefore, no goodwill was either acquired or purchased through excess payment. The assessee's accounting treatment of recognizing balancing figure as goodwill was held improper and not in accordance with the approved scheme or AS-14. Consequently, no depreciation claim could arise on non-existent goodwill. Case-Laws Income Tax Mon, 30 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446947