https://www.taxtmi.com/caselaws?id=448345 ITAT Bangalore remitted the depreciation on goodwill disallowance issue to AO for fresh consideration pending final outcome of Karnataka HC decision in Padmini Products case, which is currently stayed by SC. The Tribunal noted that once department accepted capital gains in transferor's hands, same transaction cannot be doubted in purchaser's hands. AO failed to establish that main purpose of asset transfer was tax reduction through enhanced depreciation claims. Regarding section 14A disallowance, ITAT confirmed AO's subjective satisfaction in applying Rule 8D(2)(ii) for indirect expenses related to exempt income. en-us Thu, 16 Nov 2023 00:00:00 +0530 Tue, 16 Jan 2024 11:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448345 ITAT Bangalore remitted the depreciation on goodwill disallowance issue to AO for fresh consideration pending final outcome of Karnataka HC decision in Padmini Products case, which is currently stayed by SC. The Tribunal noted that once department accepted capital gains in transferor's hands, same transaction cannot be doubted in purchaser's hands. AO failed to establish that main purpose of asset transfer was tax reduction through enhanced depreciation claims. Regarding section 14A disallowance, ITAT confirmed AO's subjective satisfaction in applying Rule 8D(2)(ii) for indirect expenses related to exempt income. Case-Laws Income Tax Thu, 16 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448345